Does anyone know of a mutual fund, etf, or other investment vehicle that has direct exposure to MBS? There are a ton of good values out there (.60 on the dollar) due to forced selling.
drs Wrote: ------------------------------------------------------- > Does anyone know of a mutual fund, etf, or other > investment vehicle that has direct exposure to > MBS? There are a ton of good values out there > (.60 on the dollar) due to forced selling. I’d be interested to know as well. I’m not sure if you can really say there is value out there… most of these instruments are so complicated that it really is a crap shoot as too what their actual “value” is. I will agree that illiquidity and forced selling probably have given a market price that does not accurately reflect the default risk in some products so as a longer term play I think there is some money to be had… getting interest back in these products will take time though.
no - there is value in a lot of these. keep in mind, many banks are forced to sell these once they fall below a certain credit rating. the credit rating is only really relevant to the first dollar loss on the bond, not the projected recoveries. hence, one CCC might be projected to return 95, and another 35
I did a quick search and came across MBB and AGG… AGG has exposure to MBS.
MBB and AGG have agency mbs exposure… most of the value is in the private label non agency mbs where liquidity is slim to none
DRS- These were the only ones I could find right now. Powershares just filed documents with the SEC to offer two new etf’s that will target non-agency mortgages… but they’re not available yet. http://www.invescopowershares.com/news/pdf/NR%20012809%20IPS%20Pioneers%20Non-Agency%20Mortgage-Backed%20Securities.pdf
thanks - that could be a decent option… i can’t believe there hasn’t been more talk of this… this market is so inefficient right now - there are unbelievable deals out there