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/RESEARCH: MS analyst Jay Bacow eyed MBS.....>

US MBS
US MBS: /RESEARCH: MS analyst Jay Bacow eyed MBS and looked at "dwarf coupon
swaps and deliverables, recommending investors buy DW 3.0/2.5 vs taking off a
long in FNCL 3.5/3 as we think the DW2.5 roll will become less special over
time."
- He added that "REITs added mortgages in 2Q, and announced equity raises now
that their price-to-book values are above 1. That would give them about $10bn in
buying power, which is constructive for" MBS, "should they continue to add from
here."

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