Mortgage-Backed Securities Traders Have Seen This Storm Before
- Investors learned lessons from last year’s hurricanes
- S&P Global sees only $30 billion of CMBS exposed to hurricane
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Hurricane Florence is barreling toward the southeast coast of the U.S. and billions of dollars of commercial and residential properties tied to mortgage-backed securities. Traders aren’t too worried.
That’s because fewer mortgage-backed securities are in the landing zone compared with last year’s devastating storms, which rattled markets but in the end didn’t end up causing major losses or defaults.