The GSE MBS Shopping Spree: Watch Out for That First Step..It's a Doozy

Kirill Krylov and Steven Scheerer break down the large-scale GSE MBS buying program announced last week and why a fast, visible policy fix may carry meaningful second-order consequences for market structure, supply, and long-term affordability. They highlight 2025’s historically low net MBS issuance and record-high CMO activity. The episode also tackles why banning institutional homebuyers is unlikely to fix affordability and what all of this means for positioning across coupons as 2026 unfolds.