Declining mortgage rates spell prepayment risk for recent RMBSSince early November, US interest rates have slipped from multi-year highs as the benchmark 10-year Treasury fell to around 2.6%. The flattening has upended most investors’ views on fixed income performance into 2019, and in particular is drawing out concerns about a reopening of the refinancing window for mortgages originated last year.

Since early November, US interest rates have slipped from multi-year highs as the benchmark 10-year Treasury fell to around 2.6%. The flattening has upended most investors’ views on fixed income performance into 2019, and in particular is drawing out concerns about a reopening of the refinancing window for mortgages originated last year.https://www.globalcapital.com/article/b1cll2mbxhv0j8/declining-mortgage-rates-spell-prepayment-risk-for-recent-rmbs[Collection]