Sunday, September 27, 2009

They Never Learn: Fed Mortage Bond Securities Manipulation

The Fed has purchased 71% of new Agency MBS issuance so far in 2009, and currently owns about 10% of all MBS outstanding.

How is the mortgage market ever going to adjust to a non-manipulated market, if the Fed continues to manipulate?


  1. Restarting securitization, a product without a real market? What happens when the Fed unwinds its balance sheet?

  2. I ran across this article on bond insurers. Worth the read:

    It took nearly two years for rating agencies to decide what CDS writers knew.