Beyond Bulls & Bears

Fed Support Helps Stabilise MBS Market
Fixed Income

Fed Support Helps Stabilise MBS Market

Like most asset classes, mortgage-backed securities (MBS) have seen heightened volatility over the past two months as the world copes with COVID-19 and investors look to reduce risk. The MBS market managed to stabilise amid help from the US Federal Reserve, which purchased these and other securities in a broad support programme. Franklin Templeton Fixed Income Portfolio Manager Paul Varunok offers his outlook for the MBS market in light of recent events.