In today’s episode, Glenn Schultz, MUFG Head of Agency Mortgage Prepayment Modeling and Strategy, discusses the regime change he has witnessed in Agency MBS prepayment during the most recent refinance wave and its implications for investors. Glenn discusses its impact on option adjusted spreads, MBS option costs, and nominal spreads, as well as the risk to his 2022 issuance outlook as a result of a higher 30-year mortgage rate.
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