Where do MBS belong?

hi everyone - I recently made the transition from real estate private equity to MBS trading (at a small arm of a Megafund) and I'm still confused as to the role MBS plays in hedge fund strategies. Would love some insight, if anyone has anything to share. Still completely new to the space, so any intel is appreciated.

2 Comments
 

I think most MBS trading at hedge funds is either relative value or front running using some prepayment model. Generally the best players are data oriented.

 

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