Given the changing MBS landscape marked by increased coupon concentration, it has become harder for investors to make money through traditional venues - such as intercoupon trades - so many have started branching out and looking at other more profitable possibilities in mortgage land.

Basis trades, as well as non-index (e.g. relocation pools, prepay penalty pools, and ARMs) and specified pools will gain ground going forward, said a recent report by Goldman Sachs. The firm added that this is reinforced by the sector's year-to-date performance.

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