According to Janus Henderson, one place investors can turn to in this unstable market is the agency’s mortgage-backed securities. The US securitized product, described by Janus’ portfolio managers John Kirschner, the assets-mortgage pool, and federally supported debts have been historically resilient. Shares recede on Friday after President Donald Trump resumed the threat of higher tariffs, and this period was levelled against Apple and the European Union. Treasury yields have moved back to prices and are pulled back from recent highs. Agent MBs are relatively inexpensive compared to investment grade corporate bonds, Kirschner noted. Corporate spreads are still tough thanks to the strong dynamics of supply demand, but the agency MBS spreads are wider due to the difficult supply background. “If you’re concerned about market volatility, they’re worried about what’s going to happen with tariffs, and perhaps they’re worried about this big tax bill, it’s basically where you can score around 140 basis points over Treasurys. Despite the turbulence that comes with Trump’s first tariff announcement in April, Agency MB as of April 30 had its best start in the year since 2020, he pointed out. Janus Henderson’s mortgage securities ETF currently has a 30-day SEC yield of 5.11% and an expense ratio of 0.22%. JMBS YTD Mountain Janus Henderson has been working on a BlackRock Rick in 2025. I liked the mortgage-backed debts and saw the opportunity to add securities to the ISHARES Flexible Income ETF when prices fell during the sale in April. It was cheaper due to the volatility of the rate, which could help reduce the mortgage once the rate volatility recovers. “Mortgage liquidity is fantastic,” he added. “The quality is good.” BlackRock also has ETFs specializing in investment grade MBS and Ishares MBS ETFs. The fund’s 30-day SEC yield is 4.22% and a net expense ratio of 0.04%. MBB YTD Mountain Isshares The MBS ETF is likely to have been heavier in the sector recently in 2025, and Kerschner believes it should ultimately be even. The Federal Reserve is rolling the institution’s MBS from its balance sheet and adding it to its supply, but banks are being pulled back from the market because they don’t like the volatility of interest rates, he explained. As a result, supply has declined and the streets are beginning to cut forecasts for mortgage supply this year, he said. Additionally, interest rate volatility should fall as the Federal Reserve appears to be holding back interest rate cuts in the near future, Kirschner added. “It could be a positive thing about lower volatility, lower concerns about banks, or even banks coming and buying more supply and reducing supply for better technology,” he said. The agency’s mortgage is also a major focus for Brian Warren, TCW’s Chief Investment Officer and Generalist Portfolio Manager. The assets account for approximately 22.5% of the funds he manages, the TCW Flexible Income ETF. ETF’s 30-day SEC yield is 5.9% and total cost is 0.40%. He sees the opportunity to be paid to wait while the best assets are appreciated for the price after finances. Agent MBS usually trades on a spread through a lesser treasury than corporate bonds. These days, they are about 65 basis points than companies, he pointed out. “In an environment where yields are still bounced back, and you’re not going to expect it to tighten — but you’re earning a significant amount of money while waiting for a final improvement in price, or in spreads,” Hollen said. So, he explained, investors should have a long-term view that at some point interest rates will fall and volatility will sink. “We’ll go through the ‘waiting location’ and also reach a stable yield curve that should bring buyers that have certainly been pulled back from the market over the past few years. ”
Among volatility, these high quality assets offer solid yields
