BlackRock sees value in commercial, home mortgages
NEW YORK (Reuters) - Declines in residential and commercial mortgage-backed securities since last year have created some of the best buying opportunities for fixed-income money managers in history, the president of the largest publicly traded U.S. asset manager said on Tuesday.
"If you take a look in the marketplace, and step back from what's going on, this is the best time that we've ever been in to add value to a portfolio," Robert Kapito said at a lunch sponsored by the Securities Industry and Financial Markets Association in New York.
Challenges remain since homeowners are still defaulting on loans and house prices are falling, he said. But if a money manager has the ability to do the proper credit research, he can "ferret out" good opportunities, he said.
Kapito said securities backed by loans on properties such as office buildings, retail stores and hotels were especially attractive, in addition to residential mortgage bonds that do not carry the guarantees of Fannie Mae and Freddie Mac.
"I am a big believer in backing up the truck and buying CMBS," he said. CMBS are commercial mortgage-backed securities.
(Reporting by Al Yoon; editing by Jeffrey Benkoe)
