First Eagle analysis puts non-agency MBS at 3.8% of mortgage securities market
TLT•Non-agency mortgage-backed securities total $573 billion, or 3.8% of the $14.9 trillion US mortgage-backed securities market, according to First Eagle’s analysis.
1. Non-agency market share
Non-agency mortgage-backed securities total $573 billion, or 3.8% of the $14.9 trillion US mortgage-backed securities market, which remains dominated by agency issuance. First Eagle’s analysis says falling rates can accelerate mortgage prepayments and create reinvestment risk, while rising rates can extend investment duration as refinancing slows. It says collateralized mortgage obligations can mitigate cash flow risks and that bottom-up security selection targets pricing inefficiencies across structures.
