Does Historic Cheapness Of Agency Mortgage-Backed Securities (MBS) Indicate Funding Stress? Dave Goodson, Professor Jeremy Siegel, Jeremy Schwartz, and Jack Farley

Oct 29, 2023

Guest

Jeremy Siegel

Guest

Jeremy Siegel, Dave Goodson, Jeremy Schwartz, and Jack Farley discuss macro view on bonds, stocks, and economy, as well as analysis of securitized products including agency MBS, non-agency MBS, commercial MBS, and CLOs. They cover topics like impact of higher rates, tech company performance, attractiveness of bonds vs stocks, risks and opportunities in non-agency and MBS market, pricing of CLOs, risks in the CMBS market, and asset-backed securities market analysis.

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Introduction

00:00 • 2min

Current State of the Market and Impact of Higher Rates

01:30 • 5min

Discussion on Tech Company Performance, General Motor Strike, and Warning Signs of Economic Weakness

06:21 • 2min

The Attractiveness of Bonds vs Stocks

08:31 • 12min

Impact of Rate Ball and Opportunities in Non-Agency and MBS market

20:24 • 12min

Risks and Pricing of Collateralized Loan Obligations (CLOs)

31:58 • 14min

Opportunities and Risks in the CMBS Market

45:30 • 2min

Analysis of the Asset-Backed Securities Market and Allocation Strategies

47:10 • 2min

What you’re about to listen to is a conversation with Jeremy Siegel, distinguished professor of economics at Wharton, Jeremy Schwartz, CIO of WisdomTree, and Dave Goodson, head of securitized products at Voya Financial, and Jack Farley, who was a guest on this episode of the “Behind The Markets” podcast.

The first part of this discussion features Professor Siegel’s macro view on bonds, stocks, and the economy, and the second part of the conversation is devoted to Dave Goodson’s in-depth analysis of the world of securitized products, such as agency MBS, non-agency MBS, commercial MBS, and collateralized loan obligations (CLOs).

Original episode of “Behind The Markets”: https://podcasts.apple.com/us/podcast/behind-the-markets-podcast-jack-farley-dave-goodson/id1194707802?i=1000632103956

Follow Jeremy Schwartz on Twitter https://twitter.com/JeremyDSchwartz

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Timestamps:

(00:000 Introduction

(01:06) Professor Jeremy Siegel on "Higher For Longer" And His Outlook On Stock Market

(08:42) Jack's Question For Professor Siegel

(09:07) Professor Jeremy Siegel on "Higher For Longer" And His Outlook On Stock Market

(10:51) Dave Goodson On Bond Market

(15:42) Does The Historic Cheapness of Agency mortgage-Backed Securities (MBS) Indicate Bank Funding Stress?

(21:41) Opportunities in Non-Agency Structured Products

(23:24) Dave Goodson On Non-Agency Commercial Mortgage-Backed Securities (CMBS)

(31:57) Is The Risk In Collateralized Loan Obligations (CLOs) Not Fully Priced?

(40:11) Private Credit CLOs

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.