Mortgages Set for Worst September Performance in Half a Decade
- Central bank support unable to overcome persistent headwinds
- Supply, refinancings and forbearance keep investors on edge
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Mortgage-backed securities are on track for their worst September performance in five years despite massive support from the Federal Reserve.
As of Tuesday’s close, the Bloomberg Barclays U.S. MBS index month-to-date excess return versus Treasuries stands at -0.18%. That would be the worst performance for mortgage-backed securities for the month since the -0.20% seen in September 2015 if the level holds through Wednesday. The average monthly excess return during September over the last decade has been 0.09%.