Securitized Products Weekly: Securitized Products - North America

Research evidence excerpt

Securitized Products Weekly: Securitized Products - North America

Global Markets Research

23 July 2026Securitized Products Weekly

Securitized Products - North America

Research Analysts

Securitized Products Weekly US Securitized Products

Paul Nikodem - NSI

paul.nikodem@nomura.com

Agency MBS +1 212 667 2130

This week, 10yr Treasury yields sold off and the MBS basis widened by 4bp. We are Rohit Sinha - NSI

constructive on the MBS basis in the back half of the year as supply declines and Rohit.Sinha@nomura.com

+1 212 298 4905bank/overseas demand increases. Q2 results released this week indicated that the larger

mortgage REITs added $7.9bn of MBS on net, bringing YTD additions to $13bn. While Chinmay Kulkarni - NSI

YTD REIT demand is tracking lower than 2025, we expect demand to increase in H2 and chinmay.kulkarni1@nomura.com

+ 1 212 298 45982026 net additions to total $30-40bn. Separately, we analyze relative value in GN/FN

swaps after recent rate moves. Current coupon GN/FN swaps have appreciated driven by Joseph Gais - NSI

increased overseas demand. We expect overseas demand to increase further and bank joseph.gais@nomura.com

demand to pick up in H2 which could drive CC swaps higher to 20-25 ticks. We also find +1 212 667 2028

value in GN/FN 2.0s from a carry perspective while we see downside risk in 6.0s-6.5s Vivek Chauhan - NSI

swaps. Additionally, the cashout loan share in low LB and low FICO pools has continued vivek.chauhan@nomura.com

to increase recently. Cashout borrowers in low LB pools prepay faster than purchase or + 1 212 667 2290

non-cashout refi borrowers, as they are likely to extract equity repeatedly. Thus, low LB Shreya Pal - NSI

spec payups could decline if the cashout share continues to rise. shreya.pal1@nomura.com

+ 1 212 667 2183

Daivaksh Patel - NSI