UBS On-Air: Market Moves Fixed Income Conversation Corner with Clayton Triick (Angel Oak) and Leslie Falconio (UBS CIO)
Dec 4, 2025
In this engaging discussion, Leslie Falconio, Head of Taxable Fixed Income Strategy for the Americas at UBS, and Clayton Triick, Head of Portfolio Management at Angel Oak Capital Advisors, delve into the current landscape of Agency RMBS and the housing market. They highlight the attractiveness of agency MBS due to valuation and liquidity, explore the appeal of non-agency mortgages, and discuss innovative mortgage options like 50-year and portable loans. Their insights on consumer leverage and market dynamics provide a fresh perspective on today's financial opportunities.
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Agency MBS Offer Compelling Value
- Agency MBS remain attractive due to cheap valuations, liquidity, and quasi‑government guarantee.
- Fed cuts (expected in Dec/early next year) and lower front‑end rates should support agency MBS performance.
Tilt Portfolios Toward Investment‑Grade Securitized Credit
- Focus on investment‑grade securitized sectors (agency, non‑agency RMBS, some CLO/ABS) for attractive yields and lower downside risk.
- Avoid relying solely on below‑IG segments that lack the same valuation support versus corporates.
Massive Home Equity Cushion
- U.S. homeowners hold a record ~$35 trillion in home equity, creating large credit cushions for mortgages.
- That equity supply underpins growth in HELOCs and second liens and improves mortgage credit resilience.