JMBS News and Press, Janus Henderson Mortgage-Backed Securities From 12/09/22

Summary While it’s been a tough year, the Federal Reserve has done investors an enormous favor in terms of the attractiveness of a wide swath of fixed-income asset classes that today look a lot more attractive than a year ago. Jay Powell and the FOMC did raise the Fed funds rate ...

Summary Amid the crosscurrents, two themes have prevailed during the post-pandemic years, which lend some perspective to the macroeconomic roadmap ahead: namely, the bipolar swings in macro policy and the forces of economic normalization. After one of the worst years for fixed income as...

Summary As a result of higher mortgage rates, an oversupply of housing and falling demand, the downturn in the housing market is only just getting started. Given the housing markets are important to economic growth, this will continue to be a significant drag on the business cycle...

Summary The average spread between the 10-year Treasury and the 30-year mortgage rate has averaged 1.7% since 1990 and now stands at 2.9%. Small and mid-cap stocks continue to look better technically than US large cap. The Russell 2000, S&P 600 and S&P 400 (midcap) index E...

Summary The Federal Reserve's aggressive push higher in the Fed Funds rate has resulted in mortgage interest rates following suit and rapidly moving higher as well. One factor that might insulate home prices from declining significantly is the lack of supply of existing homes avai...

Summary The Fed’s first big policy mistake of the pandemic era was having “the courage to act”. Arguing for a faster response of inflation to monetary policy is the Fed’s balance sheet changes. The Fed will have to push the Federal Funds rate up at ...

Summary Almost half of the option contracts being traded on the S&P 500, to the tune of $300 billion of notional each day, have one-day expiries or less. Across all listed ETFs and indices, an astounding $1 trillion of notional value in put options (bets that an index or ETF w...

Summary Rate hikes and tighter financial conditions drove fixed-income returns lower in 2022. The broad repricing of bonds and the higher starting yields we have now can help insulate investors from further losses. If we look at international bonds, this is probably the first ...

Summary Mortgage rates have not been this high since before the housing crisis. And while the housing market is slowing, prices are still high. Demand for homes may be softening, but until there is more supply on the market, prices may hold up somewhat. By Allison ...

Summary Since the peak in early June, $196 billion in Treasury securities have rolled off the Fed’s balance sheet, reducing the balance of Treasury securities to $5.57 trillion, the lowest since November 17. Since the peak, the balance of MBS had dropped by $62 billion. ...