Great article. I used to analyse this kind of fixed income stuff. The key is that prepayment option, it makes the treasury bond a different thing from just a m

Great article. I used to analyse this kind of fixed income stuff. The key is that prepayment option, it makes the treasury bond a different thing from just a mortgage plus credit risk, so a mortgage is not just lending money to someone who isn't the government, it's also accepting the chance of them paying up the loan in case rates improve for him. In general it is often the case in finance that what appear to be similar data series are actually different in some way that a tourist investor would not know. Of course the tourist has the advantage of being able to pick his market, that's why he doesn't spend a lot of time in any particular one. Sometimes interesting things happen like that negative oil price, or you discover there's some free money in corporate actions, all things that are really particular.