Global Securitized Products Mid-Year Outlook: A Balancing Act

Research evidence excerpt

Global Securitized Products Mid-Year Outlook: A Balancing Act

Global Insight

May 15, 2026 11:47 AM GMT

Morgan Stanley & Co. LLCMGlobal Securitized Products Mid-Year Outlook Jay Bacow

Strategist

A Balancing Act Jay.Bacow@morganstanley.comJames Egan +1 212 761-2647

James.F.Egan@MorganStanley.com +1 212 761-4715

Securitized products offer opportunities amid a balancing act Morgan Stanley & Co. International plc+

among deregulatory tailwinds, robust demand at elevated yields, Vasundhara Goel

evolving rate expectations, elevated supply in competing assets, StrategistVasundhara.Goel@morganstanley.com +44 20 7677-0693

and the developing AI narrative from infrastructure spend to Morgan Stanley & Co. LLC

disruption. Joyce Jiang

Joyce.Jiang@morganstanley.com +1 212 761-0165

Key Takeaways Carolyn L Campbell

The US Housing market remains stuck in neutral amid a challenging supply Strategist

Carolyn.Campbell@morganstanley.com +1 212 761-3748

environment and elevated new home inventory. We expect tepid growth in home Catherine Liu

prices, sales, and starts. Strategist

Catherine.Liu2@morganstanley.com +1 212 761-0222

Agency MBS benefits from low issuance, but the possibility of rate hikes reduces Janie Xue

demand from banks and overseas investors, leaving us neutral on the asset class. Strategist

Janie.Xue@morganstanley.com +1 212 761-6051

We keep an eye out for AI-related impacts on prepays. Gabriel Reyes Esclasans

We prefer Non-QM RMBS across the capital structure and see value in the mezz Gabriel.Reyes.Esclasans@morganstanley.com +1 212 761-4134

tranches of Digital Infrastructure ABS. Both benefit from demand technicals, Raquel Kanner

supportive fundamentals, and attractive relative value. CMBS also offers Strategist

Raquel.Kanner@morganstanley.com +1 212 761-1103