Vanguard Mortgage-Backed Securities ETF
Why Investors Should Consider Mortgage-Backed Securities
In a webcast in April, Jeffrey Gundlach suggested that mortgage-backed securities are what investors should be looking at right now.
How to measure your portfolio’s interest rate risk with convexity
Portfolio durations differ from key rate durations, as even though the durations of two portfolios may match, both portfolios may differ in the maturity profiles of the bonds they comprise, which will result in differing key rate durations.
Why does Sandra Pianalto think the economic progress to be slow?
Although GDP grew at a little under 3.5% in the second half of 2013, up from an average rate of 2% in the past three years, inflation remains at ~1% level, well below the Fed’s long-term target of 2%.
Why the weekly auction for the 52-week T-bill was strong last week
The 52-week T-bill was issued at a discount of 0.125%—up from the last month’s discount of 0.120%. The bill is expected to mature on April 2, 2015.
Housing prices rise from 2013, helping builders like Toll Brothers
The S&P/Case-Shiller Home Price Index (or HPI) was released on Tuesday, March 25. The 20-city composite HPI recorded a gain of 13.2% year-over-year (not seasonally adjusted).
The Bloomberg Consumer Comfort: Challenges for the consumers
Consumer sentiment declined this week, as represented by the lower Bloomberg CCI reading of -29 compared to -27.6 last week.
Why Treasury and mortgage rate spreads hit historic highs
The interest rate spread between 10-year Treasury securities (IEF) and 30-year conventional mortgages (VMBS) was at historic highs at the end of 2008 and the beginning of 2009
Interest rate spreads for Treasuries and mortgage rates: A guide
The interest rate spread is the difference between Treasury yields (TLH) and interest rates on mortgages (VMBS). Interest rate spreads tend to widen in times of economic uncertainty.
Key drivers for mortgage and Treasury rates in early 2013
Bond markets across the risk spectrum—including Treasuries (TLT) and mortgage-backed security ETFs (MBB)—posted gains in the first four months of 2013.
Do mortgage rates follow movements in Treasury yields?
This series will analyze how mortgage interest rates have behaved with respect to Treasuries and the reasons for this correlation.