This is an overview of our in-depth thought-piece ‘Investment Perspectives – Fixed Income, Flexible Outcomes’.
In this article, we argue that the Private Label Mortgage Backed Securites market is still fundamentally broken and that it will remain so until meaningful regulatory and operational changes are made.
A Congressional impasse over putting in place a fiscal year 2014 budget has resulted in suspension of ‘non-essential’ government services and furlough of approximately 800,000 workers. The government shutdown comes ahead of a mid-October need to raise the US debt ceiling which has potentially more important consequences.
The decision is a missed opportunity and will prolong market uncertainty.