NEW YORK - At Deutsche Bank Securities' semi-annual media briefing held last week, MBS analysts said that their outlook for the Agency mortgage market is positive, explaining that the current supply and demand situation in the mortgage sector supports spreads at these historically tight levels. Researchers also highlighted the current investor focus on credit-sensitive mortgages in non-Agency land.

Amin Majidi, head of MBS research at Deutsche Bank, said that the Agency MBS sector has experienced low spread volatility since the beginning of the year and that investors are still being rewarded by the carry trade. He added that the ABS and corporate sectors are currently tight versus mortgages, making MBS attractive versus these competing products

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