Comments on: Fed MBS Purchase: $10.2 bn http://www.aleablog.com/fed-mbd-purchase-102-bn/ Alea Jacta Est Wed, 03 Mar 2010 18:43:34 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: jck http://www.aleablog.com/fed-mbd-purchase-102-bn/#comment-2264 jck Fri, 09 Jan 2009 16:33:22 +0000 http://www.aleablog.com/?p=2275#comment-2264 <a href="http://www.reuters.com/article/bondsNews/idUSN0928601020090109?sp=true" rel="nofollow">Mortgage bonds hit by cram-down legislation advance</a> Mortgage bonds hit by cram-down legislation advance

]]> By: jck http://www.aleablog.com/fed-mbd-purchase-102-bn/#comment-2263 jck Fri, 09 Jan 2009 11:32:45 +0000 http://www.aleablog.com/?p=2275#comment-2263 I agree with John Jansen, Citi has agreed with lawmakers not to oppose a new law that would allow bankruptcy judges to alter the terms of a mortgage. This is not a good thing, it puts more uncertainty as to the value of mortgage paper, at least the ones not guaranteed by uncle sam. The Fed is purchasing MBS, nothing to do with subprime and the link I put up shows they are buying "long" paper i.e 30 year, the objective being to manipulate conventional mortgage rates downwards. I agree with John Jansen, Citi has agreed with lawmakers not to oppose a new law that would allow bankruptcy judges to alter the terms of a mortgage. This is not a good thing, it puts more uncertainty as to the value of mortgage paper, at least the ones not guaranteed by uncle sam.
The Fed is purchasing MBS, nothing to do with subprime and the link I put up shows they are buying “long” paper i.e 30 year, the objective being to manipulate conventional mortgage rates downwards.

]]> By: Kosta http://www.aleablog.com/fed-mbd-purchase-102-bn/#comment-2262 Kosta Fri, 09 Jan 2009 05:42:51 +0000 http://www.aleablog.com/?p=2275#comment-2262 Jon Jansen, at Across The Curve, has suggested one possible reason for the drop in ABX (http://acrossthecurve.com/?p=2416) -- Citigroup has agreed to allow bankruptcy judges to alter loan balances. Nothing to do with the Fed's purchase of MBS securities. Jon Jansen, at Across The Curve, has suggested one possible reason for the drop in ABX (http://acrossthecurve.com/?p=2416) — Citigroup has agreed to allow bankruptcy judges to alter loan balances. Nothing to do with the Fed’s purchase of MBS securities.

]]> By: Kosta http://www.aleablog.com/fed-mbd-purchase-102-bn/#comment-2260 Kosta Fri, 09 Jan 2009 00:24:20 +0000 http://www.aleablog.com/?p=2275#comment-2260 Good to have you back. After seeing this post on the Fed's purchase, I checked to see if the bid helped Markit's ABX indices. Strangely enough, all of Markits' AAA indices dropped today, by 10%. Here's a very quick summary http://special----k.blogspot.com/2009/01/fed-starts-buying-mbs-paper-markits-abx.html Strange that you would see such a drop, anyone have any ideas why? Good to have you back.

After seeing this post on the Fed’s purchase, I checked to see if the bid helped Markit’s ABX indices. Strangely enough, all of Markits’ AAA indices dropped today, by 10%.

Here’s a very quick summary http://special—-k.blogspot.com/2009/01/fed-starts-buying-mbs-paper-markits-abx.html

Strange that you would see such a drop, anyone have any ideas why?

]]>