Two FBR Investment Management analysts are leaving the firm to start their own mortgage fund.

Michael Youngblood and Steve Gaenzler are leaving FBR Investment to start a new investment management and advisory company, and will launch a mortgage opportunities fund that will specialize in mortgage loans and securities. These include bonds with mortgages with and without Freddie Mac and Fannie Mae guarantees.

"We expect to commence a new weekly publication in early July from our new company, and to continue to share with you our insights into U.S. mortgage and housing markets since we have done since May 15, 1986," according to a note to investors written by Youngblood.

Youngblood was not immediately available to comment.

Youngblood pioneered the analysis of non-agency, interest and principal-only, adjustable-rate, and sterling-denominated RMBS in the 1980s. In addition, he is credited with developing the first commercial mortgage conduit, the first option-adjusted spread analytics of CMBS, and the first total rate of return indexes for CMBS.

Prior to joining the company, Youngblood developed mortgage research units at Banc of America Securities, Chase Securities, and Smith Barney. He also served as a director of residential mortgage research and product manager at Salomon Brothers, working for Henry Kaufman and Lewis Ranieri.

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