The Federal Reserve‘s monetary tightening policy and the recent banking crisis have the potential to change the mortgage-backed securities (MBS) market’s dynamics more than anything seen over the last two decades, according to secondary market experts.
The Fed and U.S. banks, which glommed onto these assets in the wake of the Global Financial Crisis, are expected to play a smaller role in the years to come. They are likely to be replaced by money managers as investors. Meanwhile, with the primary market struggling amid higher rates and lower inventory, details ⇒
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