Iron Man's Guide to Surviving Market Mayhem: Agency MBS to the Rescue!

Stark Realities: Market's Gone Kablooey!

Alright people listen up! Tony Stark here your friendly neighborhood genius billionaire playboy philanthropist dropping some knowledge on how to navigate this financial rollercoaster. It seems our dear friend Mr. Trump decided to stir the pot again with tariff threats. Stocks are diving faster than I do after a shot of something strong and Treasury yields are doing the limbo. Seriously it's like watching a bad reality show – except with real money on the line. But fear not because Iron Man has a solution and it involves something called agency mortgage backed securities. JARVIS play that dramatic sting!

MBS: Not Your Father's Bond Unless Your Father Is Crazy Smart

So what are these agency MBS things? Basically they're debt obligations backed by mortgages and Uncle Sam himself. John Kerschner from Janus Henderson (not as cool as Stark Industries but hey nobody's perfect) says they're resilient during market selloffs. In other words they're like my armor – designed to take a beating and keep on ticking. Plus they're cheaper than investment grade corporate bonds right now. Think of it as getting a suit of armor at a bargain price. Who wouldn't want that?

Yields Spreads and Thrills (Not Really Thrills More Like Moderate Excitement)

Kerschner mentioned you can snag about 140 basis points more yield than Treasurys with these MBS things. It's like getting extra sauce on your shawarma – you're already eating but now you're eating *better*. Despite the tariff induced chaos agency MBS had their best start to the year since 2020. That's right folks even during a potential crisis these things are performing. It's like when I built my first suit in a cave…with a box of scraps! (Except you know less cave like and more financially sound.)

BlackRock's Rieder Joins the Party: Mortgage Backed Mayhem!

Even Rick Rieder from BlackRock is getting in on the action. He added mortgage backed debt to his fund when prices dropped during the April selloff. 'When rate volatility picks up it can cheapen up mortgages,' he said. Smart guy! It’s like finding a vintage car at a junkyard – a little rough around the edges but with the potential to be a classic. He also pointed out the liquidity and quality of mortgages are top notch. It’s like having a suit of armor that’s not only strong but also easy to maneuver. 'I am Iron Man,' after all and flexibility is key!

Supply Demand and the Fed's Shenanigans

Now there's been some supply issues with these MBS things because the Federal Reserve is offloading them from their balance sheet. Banks are also pulling back due to interest rate volatility. It’s like everyone’s afraid to dance at the party but that just means more room on the dance floor for those who know what they're doing. Kerschner believes the supply should even out especially if the Fed holds off on rate cuts. Lower volatility fewer nervous banks and less supply could set up better technicals. Technicals by the way are like the cheat codes for investing. Don't tell anyone I told you that.

TCW's Whalen: Patience Young Padawans

Bryan Whalen from TCW is another fan of agency mortgages making up a big chunk of one of his funds. He sees an opportunity to get paid while waiting for the assets to appreciate. 'We'll get through 'The Waiting Place',' he said quoting some movie I probably funded. He's betting that interest rates will eventually come down and volatility will subside. It's like waiting for my suit to charge up – takes a little time but the end result is totally worth it. So there you have it folks! Iron Man's take on agency MBS. Remember investing involves risk and I'm not responsible if you end up with a few dents in your portfolio. But if you play it smart you might just come out looking like a superhero. 'I am Iron Man.' Now if you'll excuse me I have a martini to catch.