TCW’s Flack Says He’s Cutting Back on MBS Before Fed Does

Mitch Flack at TCW Group Inc. is trimming back on mortgage-backed securities as he prepares for a volatile year.

While bond investors gird themselves for the Federal Reserve’s first increase in benchmark interest rates in almost a decade, those like Flack who focus on agency mortgage-backed securities are especially concerned about what policy makers do after liftoff: the unwinding of the Fed’s balance sheet, including its $1.72 trillion in MBS.