Pursuits
Mortgage Bonds Seen as Haven as Fed Nears End of 0% Rate Era
- Various markets for U.S. home-loan debt are outperforming
- Risks remain but securities going out on top after stimulus
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What a difference seven years make.
U.S. mortgage securities, especially those with government backing, are being viewed as a haven for bond investors as they brace for the Federal Reserve to lift interest rates as soon as this week. The central bank has kept them near zero since 2008 amid the fallout from a global financial crisis sparked by mortgage debt.