MSR portfolio strategy as a risk management strategy

Posted by Elite Internet Technologies on September 30th, 2016

Mortgage security rights (MSRs) are a well-known investment asset. This class of investment has its detractors, but you have to wonder sometimes on what basis. MSRs are actually pretty straightforward investments. What’s so difficult about understanding buying and selling mortgage security rights?

Ironically, it’s in the field of risk management where MSRs are making a name for themselves as excellent hedging options and long-term, high value risk management strategies for major institutions and corporations. It’s hard to see how what is otherwise a perfectly normal investment suddenly becomes a problem for some people.

One of the major issues, of course, is the MSR market itself. In the past, during the big crash in particular, the entire mortgage market took a massive hit. Now, nearly 10 years later, people are still sensitive about the mortgage market. Investors, in particular, particularly those hit by the shock waves, may well be understandably wary of this market.

While the wariness is understandable, it was 10 years ago. The market has moved on, stabilized, and in the opinion of some experts, MSRs are now fully fledged, fully viable, hedging options.

There is a certain amount of irrefutable proof in this regard. A company called United Capital management (UCM) is a case in point. This company provides financial advisory services for companies starting in the 0 million bracket. They specialize in MSRs as reliable risk management strategies and income earners for their clients.


At that level of risk management, it’s fair to say that MSRs have well and truly arrived as both a risk management strategy and as an investment strategy. This is “hedging” in the most literal sense of the word. Asset backed securities, generating income and protecting against losses, are obviously of significant value.

UCM is no trivial event in the market, either. They use a form of Big Data analytics to measure real time risks and monitor performance. This is true innovation at the high end of the market, and you can expect to see more of it. For more information about the company, visit their website here at www.ucm-inc.com . Expect to see some very interesting information indeed.