Cross Asset Strategy: ‘Corporates vs MBS’ with Nathaniel Rosenbaum, HG Credit Strategist and Nicholas Maciunas, Head of Agency MBS Research

Using positioning as a guide, investors have been expressing the opinion that Mortgages are cheap relative to Corporates, but the excess returns have gone the other way, with Corporates outperforming by ~1% in terms of excess return YTD. Looking ahead, Corporates can still outperform MBS in a range-bound rate environment with little economic growth risk while high-coupon MBS, with better yields due to negative convexity, can also do well in a stable rate environment.

Speakers:
Thomas Salopek, Head of Global Cross Asset Strategy
Nathaniel Rosenbaum, HG Credit Strategist 
Nicholas Maciunas, Head of Agency MBS Research

This podcast was recorded on April 1, 2024. 

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