Risks and Returns for MBS Markets Look More Balanced in 2010 as Fed Exits Market
January 8, 2010
Private investors may come back to the MBS market in 2010 as spreads widen in the wake of the March sunset of the federal government’s massive purchase program, according to Barclays Capital. As of the end of 2009, the Federal Reserve held some $908 billion of agency MBS with commitments to purchase another $155 billion. Barclays analyst Nicholas Strand said it is highly unlikely...