The Credit Edge by Bloomberg Intelligence The Big MBS Trade Has Legs Even After Government Buys, Says Clark
Feb 12, 2026
Oliver Chambers, head of fixed income at Clark Capital with 25+ years in mortgage-backed and asset-backed securities. He explains why mortgage-backed securities still look compelling after government buying tightened spreads. He compares MBS to AAA corporates, discusses Fed balance-sheet risks and potential rate moves. He also covers tech debt and how AI-driven issuance and prepayments might reshape opportunities.
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Episode notes
Asia Flows Can Flip MBS Dynamics
- Foreign flows, especially from Asia, can swing MBS demand materially if they reverse.
- The interplay of Asia, Fed policy, and GSE buying will determine mortgage performance over six months.
Use Specified Pools For Higher Coupons
- If buying higher-coupon MBS, prefer specified pools to manage prepayment risk.
- Target five-and-a-half percent coupons and specific loan-balance pools to capture extra OAS while limiting speed risk.
Headlines Often Outpace Policy Action
- Much policy talk is theoretical and headlines often move markets more than actual programs.
- Expect concrete Fed and GSE actions to arrive later in the year; don't overreact to early rhetoric.