April 2009 - Trading Strategy: MBB Basis

Mortgage Basis Trading Idea:
April 2009 MBB Basis Trade Idea (PDF)

As I have mentioned in previous idea sessions and research notes, gaining exposure to the US Mortgage sector this year could be a prime source of profits going forward as the US economy and in particular, demand for US MBS products begins to recover after the 2007-2008 slump. While many folks will not have the access required to take advantage of buying the underlying mortgages in the OTC markets, there exists one vehicle that allows for regular investors to gain exposure to this space...."