We believe the Fed’s mortgage purchase program is helping to bolster economic activity, and accomplishing more than Treasury purchases alone.

The Fed has moved aggressively to stabilize core assets, including mortgages. Yet several market indicators are still concerning.

We believe Federal Reserve and U.S. Treasury efforts to improve overall market liquidity will have a positive effect on U.S. mortgage pricing, bringing opportunity to investors.

Even as the probability of a recession in the near-term remains low, we believe investors should look to sectors that are likely to be resilient in periods of higher volatility.

Improving credit quality for U.S. housing debt could make mortgage-backed assets an attractive option.

We think those expecting a “bubble to burst” as the Fed balance sheet shrinks may be greatly underwhelmed.