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Why Bank Money Is “Disappearing” | Patrick Perret-Green

Forward Guidance

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The Effect of the Fed's Balance Sheet on MBS

The spread between MBS worries about security spreads over treasuries that's affected by quantitative easing but no a little bit. The collapse and injury origination in MBS has had a far more bigger impact than the actual any roll off by the Fed's balance sheet right it should be said. If I was a fixed income portfolio manager I'll be buying RMS because I'm not too worried about you know the AAA agency or it's going higher yeahYeah, we look at if you look at the spread of of between the 30 year mortgage rate or the average 30 year mortgage rates and the long bond now it's wider than it was at the peak of the GFC.

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