Will the GSEs Plunge Back into MBS Like Steven Dove into Lake Tahoe?

Kirill and Steven break down the surge in October prepayments and what it means for November’s setup. They analyze the GSEs’ meaningful portfolio expansion, with Fannie and Freddie adding more than $33 billion in the third quarter and discuss how further GSE demand could help stabilize spreads and liquidity. The episode closes with a look at early signs of renewed bank demand for MBS heading into 2026, as capital rules, rate cuts, and deposit growth start aligning for a potential re-entry.