Original article by Richard Leong
Mike Sheldon, Senior Portfolio Manager at Income Research + Management, shared his views on the RMBS market with International Financing Review. Mike noted that mortgage rates have risen in step with rising bond yields stemming from concerns about four-decade high inflation and the Federal Reserve’s plan to stop buying mortgage bonds and to begin raising short-term rates this year. In turn, Mike explained, valuations on non-QM deals are skewed while spreads are also running wider.
