2min chapter

Forward Guidance cover image

Why Risk Appetite Is Back | Alfonso Peccatiello, Michael Kantrowitz, Andy Constan & Jack Farley

Forward Guidance

CHAPTER

The Outright Sale of Mortgages by the Federal Reserve

I would say that a mim catalist for a leg down in housing will be the minutes and wheher the outright sale of mortgages by the fed was being contemplated. I've been speaking to chris waland, who knows lot about the plumbing of mortgage back securities,. He said that the types of mortgage back Securities that were bought by the fed in march, april, may of 20 20 were, as can be expected, very low coupon securities. They pay two % a year on the par value of a hundred par. Since then, mortgage rates have risen, as have treasury recipy rates. As such, it is extremely hard the market for the folks who ware trading, who are

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