Explain again why the Fed needs to support the MBS market? The spread between an index of MBS...

|By:, SA News Editor

Explain again why the Fed needs to support the MBS market? The spread between an index of MBS and Treasurys hits 91 basis points, the narrowest gap since at least 1984, according to Bloomberg. "A typical fundamental-value framework" is useless, says a portfolio manager. In today's monetary policy environment, one wonders what other assets the same could be said about.