T. Rowe Price Group Inc. and other money managers are seizing opportunities in mortgage-backed securities that have become attractively priced following recent market turmoil. These institutional investors view the current discount as a buying opportunity in the MBS sector, positioning themselves for potential gains as conditions stabilize.

The Iran war and volatile bond yields have punished mortgage bonds over the past month, creating significant markdowns for these securities. Market participants point to these geopolitical tensions and interest rate uncertainty as primary drivers of the selloff that has depressed prices across various mortgage products.

For investors, this represents a potential entry point into the mortgage market before anticipated recovery. Money managers positioned now could benefit from both price appreciation and ongoing coupon payments as market conditions normalize. Financial analysts suggest that institutional buying may provide support to the MBS market in the near term.