the tide rolls out
A lucid explanation of the socialization pf price discovery courtesy of wolf street. The Treasury and Mortgage Backed Security roll of or unwinding of the phenomena known as quantitative easing (QE) has begun at the Fed.
Un-subsidized price discovery will contend with elevated slices of equity (stock prices), low risk premium in the high yield (less than 2 % over treasuries), and increased borrowing requirement from the Treasury
The mechanics of the mortgage market in which the Fed owns securities issued by Agencies that in turn guarantee mortgages in effect has the Fed unwittingly underwriting MBS appraisals done in Bangalore for, say, Boston at $25 an appraisal or a savings of $3 million in a trnch of roughly 1500 mortages
Thinking all roads lead to more expensive money and less appetite in models for risk
A lucid explanation of the socialization pf price discovery courtesy of wolf street. The Treasury and Mortgage Backed Security roll of or unwinding of the phenomena known as quantitative easing (QE) has begun at the Fed.
Un-subsidized price discovery will contend with elevated slices of equity (stock prices), low risk premium in the high yield (less than 2 % over treasuries), and increased borrowing requirement from the Treasury
The mechanics of the mortgage market in which the Fed owns securities issued by Agencies that in turn guarantee mortgages in effect has the Fed unwittingly underwriting MBS appraisals done in Bangalore for, say, Boston at $25 an appraisal or a savings of $3 million in a trnch of roughly 1500 mortages
Thinking all roads lead to more expensive money and less appetite in models for risk
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