UBS announced this morning that it has changed its mortgage allocation from a modest overweight back to neutral.

Researchers at the firm advised a modest overweight on Oct. 7. Analysts stated that since then, mortgages have done quite well. The sector richened about 5 basis points in nominal terms vs. the average of the 5- and 10-year swap yields, and roughly 5 basis points on our rich/cheap regression models.

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.