General World News

Opinion: Who will buy the mortgages?

The question many in capital markets have been asking since the GSEs were put into conservatorship is this: Without Fannie, Freddie, or the Fed, who will buy the agency MBS? Today we are seeing this play out with a shortage of MBS buyers to the tune of about $2 billion in demand per day.

Supply and demand — when demand is low, MBS prices will drop at sale and the corresponding yields will rise.

Late last year, Laurie Goodman, the famed MBS expert and a leader at the Urban Institute in Washington, penned an article in Barrons details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com