Deutsche Bank Securities analysts expect President Obama's housing plan to boost prepayments substantially.

Specifically, they believe the 6% and 6.5% coupons are likely to be affected the most. This is why they recommend underweighting these coupons versus the rest of the stack. They also recommend investors to consider taking profits in the up-in-coupon trade because of its recent richening.

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.