MBS Investors Face Increased Prepayment Risks As Uncertainty Grows Over Delinquency Buyouts
July 31, 2009
The uncertainty of delinquency buyouts and how vigorously Fannie Mae and Freddie Mac intend to pursue them poses the biggest prepayment risk to MBS investors, according to Barclays Capital. Barclays analysts Derek Chen, V.S. Srinivasan and Nicholas Strand predict that delinquency buyouts by the two government-sponsored enterprises will become the major driver of prepayments, with an...