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Most were bought after financial crisis, when rates were higher. And they are still selling treasuries under 3%, while collecting probably an average of 5%.
by naveen99 4y ago
Most were bought after financial crisis, when rates were higher. And they are still selling treasuries under 3%, while collecting probably an average of 5%.
- bequanna 4y agoHuh? Current mortgage rates are the highest they have been since the 08/09 financial crisis. When exactly do you think they were buying 30 year MBS that would yield 5%? At current rates, I would guess the FED has a sizable paper loss on their MBS holdings. Not that it matters tho.
- naveen99 4y agoBefore 2010: https://fred.stlouisfed.org/series/MORTGAGE30US https://fred.stlouisfed.org/series/MORTGAGE30US