(Bloomberg) -- Demand for corporate bonds could get a boost from a surprising source in the coming months: investors taking profits on US mortgage bond holdings who need another asset to buy instead. Mortgage-backed securities have notched big gains this year of 0.45% through Thursday, outpacing most other forms of debt, after US President Donald Trump said that he’s demanding that Fannie Mae and Freddie Mac buy another $200 billion of the bonds. Risk premiums on MBS currently being produced have narrowed about 0.15 percentage point over that time, reaching their tightest level since 2022.
