2022 has been one of the worst years on record for many fixed income sectors. Government-backed bonds, including Agency mortgage-backed securities (MBS), have not been immune to negative returns. While it has been painful to get to where we are today, going forward DoubleLine is positive on Agency MBS performance broadly as spreads have widened to historically cheap levels. Further, should the U.S. enter a recession, the government-backed nature of Agency MBS could contribute to relative outperformance versus credit-sensitive corporate bonds. These factors, coupled with the potential continued slowdown in supply, could provide tailwinds for future performance.