Non-agency MBS continue to power forward, helped by an improving housing market, but also by...

|By:, SA News Editor

Non-agency MBS continue to power forward, helped by an improving housing market, but also by shrinking supply. Peaking at $2.2T in 2007, the market has shrunk to just $986B today (and an expected $750B in 2014) as principal gets paid down with little to no new origination. "The risk premium on non-agency mortgages is expected to diminish," says Amherst Securities.