New focus on mortgage-backed securities despite unsettled policy
April 13, 2017
With rising interest rates, mortgage-backed securities (MBS) are coming back into the spotlight. In this commentary paper, New focus on mortgage-backed securities despite unsettled policy, portfolio manager Ion Dan notes that an uncertain policy environment, as well as reform of government-sponsored entities looming on the horizon, make the area of MBS potentially of special interest to investors.
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The views expressed represent the Manager's assessment of the market environment as of April 2017 and should not be considered a recommendation to buy, hold, or sell any security, and should not be relied on as research or investment advice. Views are subject to change without notice and may not reflect the Manager's views.
IMPORTANT RISK CONSIDERATIONS
Investing involves risk, including the possible loss of principal.
Past performance does not guarantee future results.
Fixed income securities and bond funds can lose value, and investors can lose principal, as interest rates rise. They also may be affected by economic conditions that hinder an issuer’s ability to make interest and principal payments on its debt. Fixed income securities and bond funds may also be subject to prepayment risk, the risk that the principal of a fixed income security that is held by the Funds may be prepaid prior to maturity, potentially forcing the Funds to reinvest that money at a lower interest rate.