Investment Insights US agency-MBS: Overlooked despite counter-cyclical qualities

This month's Investment Insights serves as a primer to the history, performance characteristics, benefits and risks of the second largest bond market in the world.

27 Jul 2018

For all the regulatory changes prompted by the 2008/9 financial crisis, few markets have undergone a greater transformation than securitized mortgages. Yet despite the asset class's strong long-term risk-adjusted returns history, and positive past performance in rising rate environments, US agency-Mortgage-Backed Securities (agency-MBS) remain overlooked by many institutional investors outside of the US.