Residential mortgage assets offer attractive returns because they are not exposed to AI-driven disruption risks, despite the possibility of margin changes from automation or AI-driven robo-mortgage origination, which Sherman views as overstated given past hype around robo-mortgages in 2006.

factualpending

Speaker

Jeffrey Sherman

Evidence Quote

we're buying things like residential mortgages. They're not really exposed to that. You know, yeah, we could get some, you know, prepayment changes potentially because of some automation, but I would I joke about that with the resi guys cuz I'm like, remember we had the robo mortgage? Everyone was up in arms about that in 06, but now it's AI. But now it's cool, right?

Source

Jeffrey Sherman and Jason Draho: How Should I Be Positioned? | UBS On-AirDoubleLine Capital
Created: 8/12/2026, 10:36:49 PM

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