Agency MBS Prices Very Strong, But GSEs And Fed Unlikely to Sell in Fragile Market
July 9, 2010
With investor demand high and new supply low, agency MBS prices have ratcheted up, and there is some speculation that now might be a profitable opportunity for the government-sponsored enterprises and the Federal Reserve to sell off some of their MBS holdings. But several experts say federal policymakers aren’t likely to change course as the economy tries to pull out of the doldrums...