The housing and mortgage markets are suffering with impending recession and Fed monetary tightening.
MBS returns extended their negative run during their worst year on record as 10-year Treasury yields topped 4% and the trend in MBS spreads widened.
The MBS sector has had only two positive months in both total and excess returns this year — May and July.
Take a look at the 4.5% coupon agency MBS price and risk (duration) with Fed tightening (orange line) and crashing M2 Money growth (green line).
Time for something new in the MBS market?
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