High Flying Mortgage Hedge Funds Slide In June, See End Of Easy Run

As U.S. treasury yields have been pushed significantly higher than their previous lows, those who have held mortgage backed securities and other secured credit have been in a fix to hedge their positions in a market with sudden rising rates. Long term Treasuries and MBS rates have taken a beating with the Federal Reserve’s consistently confusing comments on whether a taper or no taper is in the books. Markets are a Racquet Ball for Bernanke If the existing murkiness were not enough, Bernanke chose to add further to it in his speech on Wednesday. His promise of continuation of the $85…