JMBS News and Press, Janus Henderson Mortgage-Backed Securities From 01/27/23

Summary In a post-QE4 higher-mortgage-rate environment, we think construction of an Agency MBS allocation should focus on two major themes. The first opportunity is a more traditional one - buying current-coupon MBS. These are the bonds that are currently being originated at close to pa...

Summary The two key risks of fixed income are interest-rate risk and credit risk. Duration and high yield are often negatively correlated. We like the secured nature of securitized bonds. By Matthew Sheridan, CFA Transcript When we think about gener...

Summary With aggressive rate hikes in its war against price inflation, the Federal Reserve pricked the housing bubble and air continues to seep out. Existing home sales fall for the 11th straight month in December. Existing home sales fell faster last year than they did in 2007, 200...

Summary Early this morning, the weekly release of mortgage purchases and refinance applications from the Mortgage Bankers Association posted outright impressive week-over-week increases for both metrics. Beginning with a look at purchases, the reading surged almost 25% week over week fo...

Summary In 2022, historically high inflation led global central banks to make a series of bold tightening moves. In the U.S., it’s our view that inflation may gradually move toward the Federal Reserve’s (Fed) 2% goal over the year. With a hamstrung Fed, the global outl...

Summary U.S. Agency Mortgages closed out the month on a sour note as earlier tightening was faded into year-end illiquidity. Market selloffs early in the year took OAS levels off their steamy perches and made the sector more attractive,. To say the year was turbulent would be accura...

Summary MBS valuations are attractive both relative to their own post-Global Financial Crisis history and relative to investment grade corporate bonds. The sharp slowdown in housing activities indicates lower organic supply of MBS, slower prepayment speed, and less paying down of the Fe...

Summary Market divergence between bulls and bears in 2023. Are markets listening to what central banks are saying about interest rates? Why perception may be worse than reality when it comes to market sentiment. There appear to be widely differing views on what 202...

Summary Mortgage applications to purchase a home are a forward-looking indicator of where home sales volume will be. Mortgage lenders have spent the last 12 months laying off people and shutting down divisions. Some smaller operations have shut down entirely. What the real estate an...

Summary After enduring one of the worst years on record across asset classes, investors should find more cause for optimism in 2023, even as the global economy faces challenges. Inflation is likely to moderate, and risks to the inflation outlook appear more balanced than they did severa...