Mortgage Sector Off to Worst Start Since 2013 Despite Fed Help
- Central bank has poured just shy of $700 billion into sector
- Performance slipped from April as Fed support was reduced
Homes stand in a residential community Irvine, California.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
Mortgage investors have yet to enjoy robust returns this year despite the Federal Reserve providing $688 billion of support to the sector since mid-March.
The year-to-date excess return versus Treasuries for the Bloomberg Barclays U.S. MBS Index stands at -0.31% as of Friday, the worst seen over a similar period since 2013, which was also a time of central bank mortgage purchases.