Tag Archive for Whole Lot

Fed Feeds Vicious Spiral – Professional Edition

The Fed’s balance sheet shrank dramatically last week as MBS prepayments, GSE maturities, alphabet soup paydowns, and shrinkage of that murky and mysterious “Other” category outraced the beginning of the Fed’s direct purchases of Treasuries. If the current pace of MBS payoffs continues, and it’s likely to as long as competing rates of return are…