Mortgage-Backed Securities Rise on Foreign Investment
April 28, 2011
Japanese investors have been accumulating the securities in advance of a possible accounting rule change in which mortgage-backed securities would be exempt. As a result, the Wall Street community has been searching for bonds suitable for delivery, as well as searching for securities to sell domestic investors. Dealers also were looking to augment existing inventories for their own trading accounts. Many traders noted they were busy searching for various pass-through securities to satisfy investors' appetites, whether it be for plain vanilla or more esoteric securities.
