Non-agency MBS prices tumbled in June, with certain subprime mortgages worst-hit with a 22%...

|By:, SA News Editor

Non-agency MBS prices tumbled in June, with certain subprime mortgages worst-hit with a 22% decline, according to BAML. While returns YTD for subprime remains positive, other paper such as prime-jumbo and Alt-A has now dropped into the red. Among the non-agency mREITs having a rough June: IVR, MFA, DX, MTGE, JMI. Then there's previously red-hot Redwood Mortgage (RWT) - an issue of private-label MBS - which is off 27% in the last 3 months.