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Mortgage-backed Securities May Answer Bond Dilemma. (Originated from The Orange County Register, Calif.)

Knight Ridder/Tribune Business News, November, 1993 by Lansner, Jonathan

Nov. 29--It has been a disappointing year for mortgage-backed securities. In fact, it's been so dreary that some experts are suggesting these bonds as a possible bright spot for fixed-income investors torn between taking risk in volatile long-term bonds or speculative - and now high-priced - junk securities or getting paltry returns on secure, cash equivalents.

"Mortgages look extremely attractive for the next 12 months," said Robert Dow of Lord, Abbett & Co. in New York, one of 10 experts polled by The Orange County Register on the outlook for the bond market.

The panel's consensus fixed-income portfolio called for slightly pruning riskier holdings, securities that happen to be some of the year's best performing issues - long-term and junk bonds. In...

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