Federal Reserve Offers Major Lifeline to Mortgage Securities Market as Liquidity Gradually Improves
November 26, 2008
The Federal Reserve this week announced a major plan to boost liquidity in the mortgage market by buying up to $600 billion of agency MBS and debt issued by the government-sponsored enterprises.Earlier efforts to boost MBS market liquidity over the past year have generally fizzled and failed to avert an historic widening of spreads. Although some of those efforts appeared to be helping...