In Brief: Apex Mortgage Testing Fixed-Rate Waters

Apex Mortgage Capital Inc. said it would broaden its operating policies and invest in the fixed-rate mortgage market.

A new policy, approved by the board of directors and announced this week, will allow Apex to eliminate its bias toward investing mostly in adjustable rate loans.

"The supply of fixed-rate mortgage products has increased in recent months as homeowners refinance from ARMs and other higher-rate mortgages into new fixed-rate mortgages," said Philip A. Barach, chief executive officer. "We believe this increased supply provides many opportunities for investment."

Investments in fixed-rate mortgage assets funded with borrowings are expected to be combined with hedging instruments in order to mitigate interest rate risk, Apex said.

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