New York - While there are admittedly "no home runs in this market," according to UBS managing director and head of the fixed-income rates and currency Laurie Goodman, "You can get a lot of singles." Speaking before investors at the recent Fall Securitized Products Seminar held at the Waldorf Astoria hotel in Manhattan. Despite the tightness the MBS market has experienced, Goodman sees pockets of relative value thanks to strong technicals in the current market.
Despite the rising interest rate environment, UBS has maintained its modest overweight recommendation, citing the low percentage or refinanceable paper outstanding. "The case for MBS is stronger in a low refi environment," said Goodman.