All about the Banks, Peak Yields?, and “Textbook Bottom” Buys 10/17/22
The Exchange
00:00
Mortgage Bonds - The Best Investment in the Fixed Income Market
Mortgages have negative convexity. As you get above par with prepayments, they can't go up much more in price because you're getting too many prepayments back. The best thing the Fed can do is get out of the way of the markets and let the markets adjust. That's what's creating these dislocations.
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Transcript
