Mortgages May Cost Borrowers More Due to Reform Proposal, Pimco Says
- New security could lead to lower, not higher, liquidity
- ‘Poorer quality bond’ may cause higher mortgage rates
Photographer: Jacob Kepler/Bloomberg
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The proposed Uniform MBS security to be introduced in mid-2019 may increase borrowing costs for the average American and introduce other "significant unintended consequences," Pimco’s Mike Cudzil, Dan Hyman, Kent Smith and Libby Cantrill said in a July 5 interview.
Their comments have been edited and condensed for clarity.