Money managers touted the advantages of non-agency mortgage securities and bank loans on Thursday on expectations that housing prices will accelerate and interest rates will rise.Yields on non-agency mortgages, which are mortgage securities that are not government-guaranteed, are likely to rise at least 5 percentage points as housing prices move higher, investors said at the Morningstar Investment Conference in Chicago."They are a good entry point," said Curtis Mewbourne, managing director and head of portfolio management for PIMCO's New York office. Mewbourne said that yields on non-agency mortgages, which are around 5 percent to 6 percent, could rise an additional 5 percentage points as the U.S. housing market improves.Last year, non-agency mortgages issued by Wall Street firms prior to the financial crisis were some of the best performing bonds. The bonds rose in part due to a search for yield by investors and a decline in the number of mortgages falling into default.Mewbourne also ...
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