Rumors that Lehman Brothers Inc. and Salomon Smith Barney will be changing their mortgage-backed securities indices to exclude Fannie Mae and Freddie Mac MBS have created a buying trend for Ginnie Mae securities this week. However, Lehman was quick to dispel the rumor.

"Lehman has stated that they will not change their MBS index to exclude MBS repurchased by the GSEs, nor will they exclude MBS used in CMOs," said Greg Rosenberg, MBS researcher at J.P. Morgan. However, Salomon has circulated a memo that they are contemplating the change, though Rosenberg thinks it is unlikely to happen.

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