The mortgage-backed securities market seemed to take Fed Chairman Alan Greenspan's further criticism of the GSEs in stride last week, as issues of supply and a big corporate calendar proved to be far more important factors affecting spreads.

"There was a little bit of widening pressure on the massive corporate supply coming this month," said Art Frank, head MBS researcher at Nomura Securities. However, by the end of last week, mortgages were doing better than the agency market, and reaction to a Wall Street Journal article - outlining Rep. Richard Baker's (R., La.) commitment to pass at least some of his GSE reform before the end of year - was hardly noticeable.

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