1443 ET - A U.S. recession seems unlikely, increasing the appeal of mortgage-backed securities, Angel Oak's Clayton Triick says. Mortgage rates are stubbornly high, at a national average of 6.66%, according to Freddie Mac. Triick sees it as an attractive entry point. Strict lending standards help reduce default risk. Triick also sees low odds of a recession that could curb borrowers' ability to pay their debt. "We are back at a level where we really like it valuations-wise," he says. "So now we think valuations look a lot better from an entry point perspective [and] we've been kind of increasing our overweight there."
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