JPMorgan Securities weighed in on the effects on the MBS market of Standard & Poor's lowering its long-term sovereign credit rating on the U.S. to 'AA+' from 'AAA'. They expect forced MBS selling to be very small.

One of the reasons is because agency MBS are not explicitly rated by the rating agencies. This is why a U.S. downgrade does not directly affect MBS, though the issuers themselves, Fannie Mae and Freddie Mac, are likely to be downgraded.

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.