Recent selling has pushed many non-agency MBS yields, particularly in subprime and option ARM, to acceptable and even attractive levels, a recent Merill Lynch report said.

Analysts said that despite the poor outlook for U.S. housing, fairly conservative scenario assumptions could still offer reasonably attractive yield profiles.

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.