By Paul W. Varunok, Portfolio Manager, Mortgage-backed Securities, Franklin Templeton Fixed Income Group®
Like most asset classes, mortgage-backed securities ((MBS)) have seen heightened volatility over the past two months as the world copes with COVID-19 and investors look to reduce risk. The MBS market managed to stabilize amid help from the US Federal Reserve, which purchased these and other securities in a broad support program. Franklin Templeton Fixed Income Portfolio Manager Paul Varunok offers his outlook for the MBS market in light of recent events.
What Are Mortgage-Backed Securities?
MBS are bonds that represent