As a journalist, I can report that Dawn Fitzpatrick, the Chief Investment Officer (CIO) of Soros Fund Management, recently stated that agency mortgage-backed securities (MBS) are currently undervalued and present a good investment opportunity.

According to Fitzpatrick, the current market conditions have created a situation where agency MBS are trading at a discount to their intrinsic value. This is due to a number of factors, including concerns about rising interest rates and the potential for increased prepayment risk.

However, Fitzpatrick believes that these concerns are overblown and that agency MBS are actually quite cheap relative to their underlying fundamentals. She points to the fact that the housing market remains strong, with low inventory levels and high demand driving up prices. This, in turn, should support the value of agency MBS going forward.

Fitzpatrick’s comments come at a time when many investors are looking for ways to generate yield in a low-interest-rate environment. Agency MBS, which are backed by the US government, are seen as a relatively safe and stable investment option, with a history of providing consistent returns.

As a journalist, it is important to note that Fitzpatrick’s views are her own and do not necessarily reflect those of Soros Fund Management as a whole. It is also important to consider other perspectives and opinions on the matter, as well as any potential risks or downsides to investing in agency MBS.

Overall, Fitzpatrick’s comments are likely to be of interest to investors and market watchers, as they provide insight into the current state of the housing market and the potential opportunities available in the agency MBS space.