BKT - BKT: A Few Reasons I'm Not Buying Here

• BKT had been a long-term staple of my portfolio, but I am not comfortable with positions at these levels.
• The fund typically had a slight discount to NAV in the past. Now, it has a premium in excess of 5%.
• Agency MBS spreads are historically very tight, suggesting limited upside on new positions.
• If the Fed begins its tapering program later this year, that will present a headwind for the agency MBS sector as a whole, and BKT by extension.

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