Many groups were overweight agency mortgage-backed securities (MBS) as they believe the Fed will keep prices supported to avoid any rise in mortgage rates slowing the housing market again. Although agency pass-throughs are negative convexity instruments, most managers believe any rise in volatility this year will be associated with politics and will be temporary. Many managers also had small amounts of commercial mortgage-backed securities (CMBS) on which they were starting to take profits. However, T Rowe Price is letting its MBS positions diminish naturally and reinvesting in asset-backed securities to reduce the pre-payment risk.Media Contact: Stefanie Ives/ David Sells, Citigate Dewe Rogerson: 0207 282 2815/63 S&P Capital IQ, a brand of the McGraw-Hill Companies (NYSE: MHP), is a leading provider of multi-asset class data, research and analytics to institutional investors, investment advisors and wealth managers around the world. We provide a broad suite of capabilities designed to help track performance, generate alpha, identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Securities Evaluations, Global Data Solutions, and Compustat; and research offerings, including Leveraged Commentary & Data, Global Market Intelligence, and company and fund research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need. S&P Capital IQ fund research: A fund report is not investment advice, a financial promotion or a recommendation to purchase, hold, sell or trade any security. A report should not be relied on when making an investment decision as the report is for information purposes only and not tailored to a specific investor. Past fund performance is no guarantee of future performance and we accept no responsibility if, in reliance on a report, you act or fail to act in a particular way. Our fund management reports are continuously monitored and updated reports are posted to www.marketscope.com © 2013 McGraw-Hill Financial, 20 Canada Square, Canary Wharf, London, E14 5LH Tel: +44 (0)20-7176 3800. All rights reserved.