Where Semper CEO Parsons Is Seeing Opportunities in the MBS Market

The video discusses the introduction of Uniform Mortgage-Backed Securities (UMBS) by Freddie Mac and Fannie Mae, aiming to add liquidity and depth to the mortgage market. Greg Parsons, CEO of Semper Capital Management, shares insights on market opportunities, regulatory impacts, and global market dynamics. The discussion covers the differences between commercial and residential markets, highlighting the potential in the non-agency sector. The video concludes with thoughts on the future of MBS and the role of government support in driving market opportunities.

What is the primary goal of introducing uniform mortgage-backed securities (UMBS)?

• To eliminate investor opportunities

• To reduce government intervention

• To increase market volatility

• To add liquidity and depth to the market

In the non-agency mortgage market, where does Greg Parsons see the most opportunity?

• In agency-backed securities

• In the commercial real estate sector

• In the non-agency portion of the market

• In government bonds

How have regulatory changes affected the mortgage credit market?

• They have increased the number of issuances

• They have made the credit profile more robust

• They have decreased investor interest

• They have eliminated legacy assets

What is a key factor driving global investors towards mortgage-backed securities?

• Government restrictions

• Increased market volatility

• Low rate environment

• High interest rates

Why is the residential market more attractive than the commercial market according to Greg Parsons?

• Higher volatility in residential market

• More stable credit dynamics in residential market

• Lack of opportunities in residential market

• Greater government intervention in commercial market

What impact would a revamp of Fannie and Freddie have on the MBS market?

• Decrease in market liquidity

• Increase in issuance and opportunities

• Stabilization of interest rates

• Reduction in investor interest

What is the perceived value of non-agency MBS according to Greg Parsons?

• High volatility and low yield

• Strong yield, low duration, and low volatility

• High correlation with traditional risk assets

• Limited opportunities for investors