Saturday, July 18, 2009

Update on the MBS purchase programs

The Fed owns roughly 12% of the stock of GSE-guaranteed mortgage-backed securities (MBS). Tack on the purchase program at the Treasury, and the government owns roughly 15% of the MBS stock. Try unwinding that quickly.

A note on data sources: To approximate the stock of MBS, I add the recent recorded net-acquisitions by the Fed and the Treasury to the stock of MBS at the end of Q1 2009 (don't know the private acquisitions), as recorded in the Fed Flow of Funds tables (table L.125 here). Total Fed net-purchase must be calculated by tallying up the NY Fed's weekly purchases here. And the Treasury acquisitions are released in its monthly statement.

Rebecca Wilder

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