MBS purchase programme sent strong signal to mortgage market: Fed paper
Research published by the Federal Reserve on Thursday shows the announcement of a mortgage-backed security (MBS) purchase programme eased risk premiums more than the programme itself.
Diana Hancock and Wayne Passmore, the paper's authors, measure deviations in MBS yields to assess how the Federal Reserve's MBS purchase programme – a 16-month programme announced on 25 November, 2008 and completed on 31 March, 2010 – affected risk premiums that were embedded in mortgage and swap markets.
The
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