An Update On The Non-Agency MBS Sector

davfor

This report focuses mostly on CEFs but it does discuss some OEFs including IOFIX.

We noted how AlphaCentric Income Opportunities saw a "run on the fund" where shareholders all liquidated en masse causing a downward spiral in prices.



(Writing about CEFs)....most NAVs are still well below where they were in February even when including the distribution paid since. As we've noted, these securities take the elevator down and stairs back up. We still expect prices to return to around an average price of 90 cents on the dollar but that it would take at least 6 months and more like 18-24 months to do so.

https://seekingalpha.com/article/4377703-update-on-non-agency-mbs-sector

FD1000

Good read. Most of my portfolio is in this space