Cross Asset Strategy: ‘Corporates vs MBS’ with Nathaniel Rosenbaum, HG Credit Strategist and Nicholas Maciunas, Head of Agency MBS Research
Description
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.
This communication is provided for information purposes only. Institutional clients can view the related reports at https://www.jpmm.com/research/content/GPS-4656379-0 and https://www.jpmm.com/research/content/GPS-4658455-0. For more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2024 JPMorgan Chase & Co. All rights reserved.
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