Trade Brexit With Short MBS

One of the most preferred trades for a possible Brexit seems to be buying duration (the most popular trade appears to be selling sterling although this involves dipping into the FX market which can be a testing experience). In fact, this seems to be one of the most popular trades of the moment as uncertainty prevails in the financial world and global economy. Diversifying For Brexit – FactSet However, Morgan Stanley believes a better trade for a Brexit scenario is selling mortgages vs. Treasuries. Morgan Stanley’s June 22 Agency MBS Brief research note lays out the details of the trade….