JLS News and Press, Nuveen Mortgage Opportunity Term Fund From 10/25/22

Summary Year-to-date, allocations to floating rate notes have resulted in a more than 20% performance differential compared to U.S. 10-Year notes. Rising rates explain why owning the same securities as the Agg but reducing the maturity profile (1–5 years) led to losses that...

Summary In what was an especially turbulent month past, the MBS market recorded back-to-back underperformances for the first time all year. September fared its worst of 2022, and the worst of all time, besting July 2003’s great Refi wave (-153bps) and October 2008’s ...

Summary The MBS market saw its performance steadily decline in the days leading into the month-end Jackson Hole Fed summit, as Vols ticked up and widening ensued. The NYFRB MBS purchase operations schedule decreased from $12.8B for the month to $7.8B, roughly $390 million/per day....

Summary Most bread-and-butter income sectors took significant losses this year and this includes high-quality sectors like investment-grade bonds which normally outperform in weakness. In this article, we highlight a trio of niche and overlooked income sectors: CLO debt, asset-bac...

The U.S. MBS agency market had another bounce-back outing in July, alternating good and bad months since the start of 2022. Real money accounts require a somewhat calmer setting, and Asian investors are quiet as the U.S. dollar continues to trounce all other currencies. Year to da...

Now, most recently, the Russian war with Ukraine and its shock to energy and commodity markets, at a time when inflation was already running hot, has added greatly to investor concerns. While retirement planners and long-term liability managers often need to take on duration to hedge ...

Mortgage rates have climbed this year at one of the fastest paces on record. Yields on agency mortgage-backed securities have soared to 4.17% in July 2022 from 1.98% in January. The Fed’s involvement in the agency MBS market is not uniform, and certain pockets of the sector wil...

Although mortgage rates have stabilized a bit, they remain at some of the highest levels since 2008 and have been heading marginally higher in the past week. Given the slight rise in rates, demand for mortgages continues to predict further weakness in upcoming home sales data. Not...

If inflation and rate increases do not rise above current market expectations, however, there is a case for longer-duration instruments. Asset allocation models are well documented across the investment universe, and portfolio diversification is a widely accepted principle. Histor...

It certainly has been an extraordinary period of weakness for the bond market with the most rapid rising yields that we’ve seen in decades. But the other side of the coin is that now that yields are at these higher levels, bonds represent a much more interesting investment oppo...