Jumbo MBS Sector Sees Faster Prepays Due to Historically High Credit Quality
July 17, 2009
Mortgage securities made up of higher credit-quality borrowers have entered “the rarified world of 750+ credit scores,” causing lightning fast prepays on many of those MBS in the jumbo market, according to Barclays Capital analysts. Many agency jumbo pools prepaid extremely fast in June, prompting a flurry of questions from investors wondering if the trend signaled the start of a general...