Securitized Products Strategy: Securitization Weekly

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Securitized Products Strategy: Securitization Weekly

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Securitized Products Strategy

Securitization Weekly

Overview – Some run it hot: good for spreads, not good 11 May 2026

for duration Securitized Products Strategy

United States1Q26 nominal GDP growth of 6% equals the 50-year average but is above the 10-year

(5.5%) and 20-year (4.4%) averages. Trump Administration likely to run economy even Chris Flanagan

hotter and look for AI deflation to eventually mitigate inflation. Strong nominal growth FI/MBS/CLO Strategist

should be supportive of credit and securitized spread tightening but unfavorable for BofAS+1 646 855 6119

duration. christopher.flanagan@bofa.com

Agency MBS – Show me the money manager: Q1 update JeanaMBS StrategistCurro

Rates and spreads rangebound, we stay basis overweight. BofA econ pushes out timing BofAS+1 646 855 9135

of cuts to July & Sept 2027. Q1 demand: mmgrs sell into GSE buying strength, reduce jeana.curro@bofa.com

allocations but still heavily 4.3% overweight. Banks turn net adders. May premium Pratik K. Gupta

speeds to slow 14-20 VPR as per rate lock data; April CMO issuance falls to $28bn, still CLO/MBS Strategist BofAS

elevated vs avg. +1 646 855 9146

pratik.gupta@bofa.com

Non-agency MBS - NAIC, SP Conference, & Housing: the Theresa O'Neill

name is bond – 007 hundred billion RMBS bonds ABSBofASStrategist

RMBS NQM AAA widen but BBB tighten. Jumbo 6 cap floaters 155-160bps. BofA SP +1theresa.oneill@bofa.com646 855 9285

conference constructive, RMBS growth strong. NAIC 2026YE: RBC charges for Alan Todd, CFA

unaffiliated trusts = 68bps, same as whole loan investments, unlocking additional CMBS Strategist

Investments. Mar HPA +0.4%YoY. -0.2$YTD(SA). Inventory growth continuing to slow. BofAS

+1 646 855 6383