Banks revise MBS outlooks as ARMs ‘siphon’ fixed supply

By Matthew Scully
16 Jun 2014

At least two large US banks are reducing their forecasts for mortgage-backed securities volumes in 2014 by more than $100bn, as adjustable-rate mortgages climb towards their pre-crisis peak.

JP Morgan and Bank of America Merrill Lynch started 2014 with MBS forecasts of $150bn and $175bn each. Now, they are dropping those projections by well over $100bn. 

This is the second revision for JP Morgan, which now ...

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