Amherst Securities is advising investors to be overweight on MBS, telling them that prepayment speeds are not really a factor – despite ultra low mortgage rates.

In a new research report, Amherst asked, "Why are [prepayment] speeds so slow?" and then answers the question by saying consumers hoping to refinance cannot "cash out" enough to pay for the closing expenses.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.