Dodge & Cox turns to MBS as Treasury yields rise

The Dodge & Cox Income Fund tilted away from US government paper and toward high-quality mortgage-backed securities as Treasury yields climbed in the first quarter.

Holdings of mortgage-related securitised assets, comprising mainly Fannie Mae, Freddie Mac, and Ginnie Mae bonds, stood at $2.4 billion at end-March, up from $1.7 billion at end-December 2017, according to the most recent quarterly statements of assets filed with the Securities and Exchange Commission. The percentage share of the