Legal analysts discuss US Supreme Court's gun ruling on domestic violence cases. ETF experts talk about a $71 billion reshuffle. Global autos analyst covers Canada's tariffs on Chinese EVs. Mortgage-backed securities strategist shares midyear outlook.
U.S. Supreme Court upholds domestic violence gun ban, influencing firearm law discussions.
Significant reshuffle of $71 billion ETF expected, impacting the ETF market.
Canada preparing tariffs on Chinese EVs, highlighting global trade tensions in the auto industry.
Deep dives
Mortgage Backed Securities Market in the First Half of the Year
The mortgage backed securities market experienced ups and downs in the first half of the year, with total returns initially down over 2%. The market has since rebounded, with excess returns nearly flat. Money managers are the primary buyers, but concerns about volatility and tight spreads may affect their investment decisions.
Impact of Fed Policies on Mortgage Rates and Investor Behavior
The mortgage market's reaction to Fed policies is closely tied to movements in the 10-year Treasury yield. Mortgage rates are likely to be influenced by longer-term economic outlooks rather than immediate Fed actions. Banks' appetite for mortgage backed securities has waned due to balance sheet concerns and increased supply.
Credit Spreads and Affordability in the Mortgage Backed Securities Market
Credit spreads in the mortgage backed securities market are currently relatively tight, reflecting a historical shift from previous wider ranges. Affordability will play a key role in spurring activity in the market, with a combination of income growth and lower rates necessary for increased consumer home-buying.
Households as Primary Investors in Mortgage Backed Securities
Households have emerged as key investors in mortgage backed securities, offsetting reduced holdings by the Federal Reserve and banks. While there is a downward trend in net purchases, the dynamics and composition of household investors remain complex.
Outlook for Mortgage Rates in the Remainder of the Year
The expectation for the mortgage market in the second half of the year is influenced by anticipated movements in the 10-year Treasury yield. With rates projected to remain around current levels, the market may lack significant momentum. Factors such as supply dynamics and buyer behavior will continue to shape the mortgage market landscape.
June Grasso, Bloomberg Legal Analyst and Host of the Bloomberg Law Show, and Andrew Willinger, Executive Director, Duke Center for Firearms Law, discuss the U.S Supreme Court upholding a US gun ban in domestic violence cases. James Seyffart, Bloomberg Intelligence ETF Research Analyst, discusses a big reshuffle of a $71 billion ETF looming. Steve Man, Bloomberg Intelligence Global Autos and Industrials Research Analyst, discusses Canada reportedly preparing tariffs on Chinese EVs. Erica Adelberg, Bloomberg Intelligence Chief Mortgage-Backed Securities Strategist, discusses her midyear uutlook for US Mortgage-Backed Securities.