In just the week since QE∞ was announced, the spread between agency MBS and 10-year Treasurys...

|By:, SA News Editor

In just the week since QE∞ was announced, the spread between agency MBS and 10-year Treasurys has collapsed from 60 to just 6 bps. With no spread there, look for non-agency MBS - already in rally mode as house prices recover - to continue to benefit, says BAML's Chris Flanagan. Non-agency or hybrid mortgage REITs: CIM, MFA, IVR, WMC.