The idea of mass mortgage refinancing is slowly emerging through Congress and among financial intellectuals (see the latest: article by Allan Sloan in the Feb2012 edition of Fortune). According to the article, Bill Gross supports the idea. But if implemented, mass rafis would destroy the mortgage-backed securities. HABDX keeps some 15-20% of its portfolio in MBSs. I would love to know Mr.Gross' position as to how he would handle those losses within HABDX in that case. Any views?
A mass-refis idea is slowly emerging through Congress and a financial intellectuals community (for the latest: see the Feb2012 edition of Fortune- an article by Allan Sloan). By its nature the refis, if done, would destroy mortgage-backed securities which are the DBLTX only portfolio. I would be much interesting to know the Gundlach's position on the refis developments and on his plans A or B in case the refis become a reality. Any views/ideas?