The credit and prepayment risk-reward tradeoff looks attractive for mortgage securities guaranteed by Fannie Mae or Freddie Mac, says Dodge & Cox Income's Tom Dugan.
Nuveen's Andy Stenwall says the government's guarantee of Fannie and Freddie mortgage-backed securities make them as safe as Treasuries and that the pricing of other securities are attractive enough to provide a cushion against potential losses.
Amherst Securities' Sean Dobson says although housing is undeniably affordable, a tremendous supply/demand imbalance could dent pricing.
Morningstar's Eric Jacobson outlines the fundamentals and key risk factors investors should know about this huge part of the bond market.
©2012 Morningstar Advisor. All right reserved.