The Bank and Mortgage Crisis

Banks reported that really ugly number of fund realized losses on their securities and people finally started paying attention. The problem hasn't gone away because during 2020-21, we packed three quarters of the mortgage market into a range of about 2.5% in terms of coupons. So if you own a Gen. You may three and the Fed raises Fed funds six points,. What happens to that security? It trades in the 70s. And this is why banks are having a problem.