6 years ago
Subscribe to:
Post Comments (Atom)
Google App Engine
AddToAny.com/share_save
Facebook Badge
Subscribe To http://weblog2010webnet@blogspot.com/
Posts
Comments
My Blog List
-
Standing and holding on Still - rayloke2009blogspot posted a photo: [image: Standing and holding on Still]
-
Moving on from Picasa - *Update March 26, 2018*: The Picasa Desktop application will no longer work online, which means that you will not be able to upload or download photos and ...8 years ago
-
Art Williams - Just do it - you Do it and Do it and Do it until the job ... - SAME BUT UNIQUE ; Art Williams - Just do it - you Do it and Do it and Do it until the job ...: http://youtu.be/bcsHLY4TAzI via @youtube11 years ago
-
Improvements to the Blogger template HTML editor - Posted by: +Samantha Schaffer and +Renee Kwang, Software Engineer Interns. Whether you’re a web developer who builds blog templates for a living, or a web...
11 years ago -
-
Appointment Scheduling Gadget - From our awesome friends at DaringLabs. [image: Powered by Google App Engine] Yes, I want to book appointments from my blog! Use your blog to drum up ...13 years ago
-
Popular Posts
-
Dating guru Blake Eastman decodes body language. - Slate Magazine
-
Newsvine - Bush, Cheney Convicted of War Crimes in Absentia
-
Will-i-am.com - The Official Will.i.am Website
Facebook Badge
Facebook Badge
add widget ''networkedblogs_nwidget_container''
Popular Posts
-
Dating guru Blake Eastman decodes body language. - Slate Magazine
-
Newsvine - Bush, Cheney Convicted of War Crimes in Absentia
-
Will-i-am.com - The Official Will.i.am Website
AddThis
About Me
ADD IN ''HTML5 Powered with Connectivity/Realtime, CSS3/....
ADD ''Seed Newsvine''
Seed Newsvine
Subscribe To
Posts
Comments
rayloke2009blogspot.com
Posts
Comments
Subscribe To
Posts
Comments
THE MASTERSTROKE, ...Bank have been gobbling up government guaranteed MBS. But they’ve been less likely to actually lend. FactSet
ReplyDeleteThis is where QE3 comes in. The Fed says it will buy mortgage bonds. It has massive buying power. That pushes up the prices of the bonds. And at a certain point, the idea is that the banks won’t be able to resist. They’ll bite, selling their bonds, and collecting a big pile of cash.
But after a few high-fives around the boardroom table, the bankers realize they now have another problem. They’ve got a pile of cash they’ve got to invest profitably. And there aren’t a lot of good places to go. Why don’t they just go buy more MBS?
They could. But remember, MBS are more expensive now. And in the world of bonds, prices and investment returns move in opposite directions.
And QE3 has been hugely successful in driving down the yields on mortgage bonds. A good gauge of these yields is known as the “current coupon” yield. Basically, it’s the going yield on a mortgage bond that would be stuffed with the mortgages banks are currently giving out. Mortgage interest rates have been going down. So the return on these bonds is looking skimpier and skimpier: ...