Fixed Income Strategist
01/13/2026
In our latest Fixed Income commentary, Portfolio Manager and Head of Fixed Income, Tom Tzitzouris discusses the recent news around Fannie Mae and Freddie Mac’s potential increase in purchases of mortgage debt.
Defintions:
Mortgage-Backed Security (MBS): A financial instrument backed by a pool of mortgage loans that pays investors from borrowers’ principal and interest.
Option-Adjusted Spread (OAS): The yield spread of a security over a benchmark, adjusted for the impact of embedded options like prepayment.
Federal National Mortgage Association (Fannie Mae): A government-sponsored enterprise that buys mortgages and issues mortgage-backed securities to provide liquidity to the housing market.
Federal Home Loan Mortgage Corporation (Freddie Mac): A government-sponsored enterprise that purchases mortgages and securitizes them to support mortgage availability.
Government National Mortgage Association (Ginnie Mae): A government agency that guarantees mortgage-backed securities backed by federally insured or guaranteed loans.
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