Who is Fed buying $40B/mo of MBS from?

[newwurldmn]

Quote from CT10Gov:

I should also point out that all MBS bought by the fed were 'agency' (http://www.newyorkfed.org/markets/ambs/). There's none of that no-doc junk crap in those collateral pools.



Attachment point is the percent loss that a collateral pool must take before the tranche is hit; detachment point is when the tranche is completely gone.

Ah. I had never heard that terminology.

 

[sle]

Quote from sma202:
That's incorrect, you obviously have no knowledge of the fed collateral process. Don't give a textbook answer when you have never worked in this space. What happens in reality is very different than a book

What does collateral process have to do anything discussed here? We are talking about the asset purchasing program, not the the discount window and the garbage that banks are allowed to pledge. The only stuff bought by the QE program is agency paper - Fannies/Ginnies and some home loan pass-through. It is pretty clearly defined and it's very easy to trace - Bloomberg got it down to the very ISINs the Fed owns.

Quote from CT10Gov:
It's amusing that ET is both cynical, ignorant, and entirely nihilistic.

Recalling the mandatory philosophy class, I would beg to differ. A person who believes in a variety of conspiracy theories (which covers a large portion of the audience on ET) can not be called a proper cynic.

 

[oldtime]

Quote from sle:

What does collateral process have to do anything discussed here? We are talking about the asset purchasing program, not the the discount window and the garbage that banks are allowed to pledge. The only stuff bought by the QE program is agency paper - Fannies/Ginnies and some home loan pass-through. It is pretty clearly defined and it's very easy to trace - Bloomberg got it down to the very ISINs the Fed owns.


Recalling the mandatory philosophy class, I would beg to differ. A person who believes in a variety of conspiracy theories (which covers a large portion of the audience on ET) can not be called a proper cynic.

well I don't know exactly who it is, but I know somebody is out to get me. Not sure why they care so much about me. I'm not really a big guy.