MBS investors 'nonchalant' about Fed tapering - JPMorgan

|About: iShares CMBS ETF (CMBS)|By:, SA News Editor

Nearly 50% of those surveyed see no impact to MBS spreads from what's expected to be the Fed's balance sheet reduction announcement this week. In fact, 10% of respondents expect spreads to tighten (not an absurd expectation given that investors have had many weeks to price in the news).

Forty-six percent see a modest increase in spreads.

The survey also shows 60% of investors as being overweight MBS, one of the highest levels in years, according to JPMorgan.

Source: Bloomberg's Alexandra Harris

ETFs: MORL, REM, MORT, DMO, TSI, JLS, PGZ, CMBS, FMY, JMT, LMBS, MBSD

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