The last few days have seen a very interesting development af spreads on underlying mortgages and agency issues in the US have turned negative, so Fannie and Freddie can not buy mortgages and sell agency debt without a loss anymore.
There seems to be a total lack of buyers of agency debt as the guarantee seems weaker than the one on bank debt. The same problem can be seen in Denmark where mortgages is excluded for the bank agreement. In Denmark this is hurting both callable mortgages and non-callaable (=equivivalent to agency)
But in Sweden where the stabilisation plan yesterday specificly included mortages, probably so help out the state owned SBAB, mortgages are doing better
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