Can the Fed Keep Mortgages Propped??

Can the Fed Keep Mortgages Propped??

Avoiding Agency Mortgage Allocations in our Models We’ve been saying since the middle of last year that the percentage of total returns in fixed income coming from price return wouldn’t likely be the same into the future. Interest rates have nosedived lower following...
Can the Fed Keep Mortgages Propped??

What Bonds Do You Own?

The mathematics of compounding: big losses are essentially ALL that matter to your rate of compounding, not the small losses—and not even the big or small gains. The big losses literally destroy your geometric returns and, equivalently, your wealth, through what I...
Can the Fed Keep Mortgages Propped??

The Fed Bazooka

Originally posted at The Backcourt Report…                                                                               Source: Businessinsider.com The Fed has taken drastic measures attempting to fight against the economic implications from the COVID-19...
Can the Fed Keep Mortgages Propped??

Fed Update

Originally posted at The Backcourt Report Fed Cuts Rates 50 bps The FOMC voted unanimously to cut its overnight target range 50 basis points to 1.00% – 1.25% in an intra-meeting decision. This was an emergency policy action geared in reaction to the Coronavirus...
Can the Fed Keep Mortgages Propped??

Credit: Priced to Perfection

Originally posted at The Backcourt Report… This is probably a little more granular (also my first post so please don’t judge too harshly) than past posts into the Backcourt Report, but I think it is important to use my background in fixed income trading/ credit...