Anticipating Tuesday's easing by the Federal Reserve Board, mortgage strategists and prepayment analysts on Wall Street had differing views of whether to buy or sell securities backed by residential mortgages.

Morgan Stanley distributed an e-mail note to investors on the "top 10 reasons" to sell them. Other firms, including Donaldson, Lufkin & Jenrette and Prudential Securities, were more upbeat about them.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.