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Forward Guidance cover image

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

Forward Guidance

NOTE

The Effect of the Fed's Balance Sheet on MBS

The shadow fence funds rate has a better fit than the mortgage rate when taking into account more hours of spreads./nThe spread between the 30 year mortgage rate and the long bond is wider than it was at the peak of the GFC, possibly due to quantitative tightening./nLack of activity in origination and refi is a bigger factor in the performance of MBS than quantitive easing.

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