While mortgages have underperformed U.S. Treasuries year to date, lower rates have sparked a refinancing wave that is creating tailwinds in the housing market. Portfolio Manager Nick Childs explains why we believe active management is key to uncovering opportunities in the space.
- With mortgage rates low and a large percentage of loans refinanceable, we are seeing tailwinds in today’s housing market.
- Understanding the nuances of borrower behavior and taking advantage of volatility in the space should enable active managers to capitalize on opportunities.
- We believe future changes in the interest rate regime and increased volatility may present further opportunities.
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