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  1. Member
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    #1

    An overweight exposure to mortgage-backed securities contributed to returns on the ma

    Dear all,

    How should I understand the underlined?

    Thanks in advance.

    Eartha

    Our strategies produced mixed results. Credit spreads continued to contract but unexpectedly strong economic data and rising inflation concerns drove a sell-off in the Treasury market. An overweight exposure to mortgage-backed securities contributed to returns on the margin. The sector had its third consecutive month of positive excess returns on strong carry and declining implied volatility.

  2. Editor, UsingEnglish.com
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    #2

    Re: An overweight exposure to mortgage-backed securities contributed to returns on th

    I am not an economist, but I would interpret it as meaning that their mortgage-backed securities performed well and added to profits, though the word overweight suggests that there might be some concern that they are overexposed to these securities.

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    #3

    Re: An overweight exposure to mortgage-backed securities contributed to returns on th

    Eartha: Despite the fact that I have a university degree in Economics, an, accounting designation and have spent many years working in the financial industry, I don't believe you need to have such a backgound to make sense of the sentences you submitted. I suspect it is not the meaning of
    the sentences but the definition of the jargon being used that is causing you problems.

    I agree with Tdol's explanation in large measure, though I suspect the
    term 'on the margin' means that the contribution of mortgage-backed securities to aggregate returns was minimal (small.)

    Why don't you google the terms you don't understand and see if that
    helps?

  4. Editor, UsingEnglish.com
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    #4

    Re: An overweight exposure to mortgage-backed securities contributed to returns on th

    Quote Originally Posted by bwkcaj_ca View Post
    though I suspect the
    term 'on the margin' means that the contribution of mortgage-backed securities to aggregate returns was minimal (small.)
    Thanks for that.

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