Mortgage-backed securities (MBS)
US government-sponsored mortgage securities ‘amplify crises’
Paper says dynamic between lenders and Fannie Mae/Freddie Mac not conducive to financial stability
US banking collapses muddy monetary policy outlook
Bank failures raise question of whether Fed can maintain stability while tightening policy
BoI’s Yaron highlights mortgage market reform
Bank of Israel measures aim to foster transparency and comparability in key market
Reserve managers stick to asset diversification
Higher yields not prompting central banks to abandon investments in less conventional asset classes
Fed’s asset selloff may start in May, Brainard says
FOMC minutes show consensus for “balance sheet runoff at a coming meeting”
Trends in reserve management 2021: survey results
Results of the 17th annual Reserve Management Trends survey of reserve managers conducted in February and March 2021
Equities have passed the Covid-19 test, reserve manager says
The higher yield and resilience these assets have offered in 2020 may further boost reserve diversification
New York Fed paper examines MBS price dislocations in March
Flight to safety and dealer balance sheet constraints widened cash-forward basis, researchers find
Fed promises to keep buying assets at current rate
Fed will hold accommodation in place for “however long it takes”, chair Jerome Powell says; FOMC releases first projections this year
Fed’s balance sheet increases by 50% since March
Total assets now just shy of $6.4 trillion, a new record high
Fed commits to unlimited bond purchases in massive new programme
FOMC announces radical new measures and calls on other policy-makers to act aggressively
National differences affect eurozone house loans – ECB paper
Study looks at banks owned by same groups but operating in different eurozone countries
RBI weighs plan to boost securitisation market
Government-sponsored intermediary could be formed to act as market maker and standard setter
Fed balance sheet could surpass crisis-era peak by 2025
Central bank may start buying Treasuries outright as soon as this year, New York Fed report shows
Canadian governor calls for innovation in mortgage market
Poloz says Canada should consider a private market for mortgage-backed securities
Time for resilience
Events that impact markets have made it crucial to build resilient portfolios that are aware of downside risks. BlackRock explores the importance of protection in downturn scenarios for reserve managers.
Lithuania adopts maximum diversification as defensive strategy
Risk parity protects portfolio from lower bond prices and lower-for-longer yield environment
Irish central bank makes lenders pay €647 million over mortgage scandal
Regulator moves on to enforcement actions after securing compensation for 40,000 customers
Innovation in reserve management: BNP Paribas Asset Management
The asset manager developed new fixed income investment strategies in 2018 that have delivered strong returns and diversification for clients, while also offering practical training support
New York Fed wraps up final sales of crisis portfolio
Maiden Lane vehicle created in wake of Bear Stearns bailout ultimately turns a profit
Fed’s QE contributed to increased risk-taking by lenders – research
Mortgage real estate investment trusts increased leverage following Fed’s asset purchases