Federal Reserve Balance Sheet Update: Week Of February 11

Tyler Durden's picture

The Federal Reserve's balance remained at an all time high of
$2.233 Trillion in assets, after a $3 billion increase in MBS and
Agency purchases week over week. 

  • Securities
    held outright: $1,913 billion (an increase of $57 billion MoM,
    resulting from $52 billion increase in MBS and $5 billion in
    Agency Debt), or a $3 billion increase sequentially. The fed is now 95% complete with its purchases of MBS.
  • Net
    borrowings: $127 billion. The monetary base increased by $50 billion in the past fortnight to $2.06 trillion. The ratio of total assets to Monetary Base remained constant at 1.08x, elevated from the historical ratio of 1.00x.
  • Float,
    liquidity swaps, Maiden Lane and other assets: $193
    billion. The CPFF program was at $8.5 billion. FX liquidity swaps declined
    by were flat at a nominal $100 million. Maiden Lane I
    and Maiden Lane II were at $26.9 and $15.3
    billion, while Maiden Lane III continues pretending it has value and came at $22.2 billion.

Custody foreign holdings increased by $9.3 billion to $2,956 billion.

A maturity profile of the Fed's assets indicates a skewed maturity distribution. Of a total of $2 trillion in dated assets, $132 billion mature in under 15 days, $226 billion in under 1 year, and $976 billion in under ten years.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DavidC's picture

It continues to amuse/bemuse me that banks' assets are DEBT, the quality of which, in the Fed's instance, are of somewhat dubious quality.

DavidC

SteveNYC's picture

This is going to equate to the largest theft of taxpayer wealth in the history of the world.

 

Imagine being a banker:

"Let's create some toxic shit and sell the hell out of it"

"Shit, nobodies buying it anymore"

"Take a write-down? Fuck that, change the accounting rules. Call Hank, Tim, Barry and Larry"

"How do we get rid of this dross? I need my gambling fix, short on cash/liquidity dude!"

"Sell it to Ben. He won't have to realize a loss on this until it all blows over. By then we'll be on our own island"

"Great idea. This rocks"

Ned Zeppelin's picture

If you ever need to convince someone who thinks everything is fine and dandy and isn't Ellen so good on American Idol and I couldn't stand that Paula Abdul anyway and why on earth are you always babbling about a new great depression, I find is useful to show them the 2007 to 2010 Fed balance sheet.  They get the picture right away, and then start to ask the questions that take them down the road to . . .

Morpheus:   “You take the blue pill, the story ends, you wake up in your bed and believe whatever you want to believe. You take the red pill, you stay in wonderland, and I show you how deep the rabbit hole goes.”

Anonymous's picture

So i'm not sure if im reading into this correctly or not but since the Fed is for-profit and it has what appears to be about 25-50 Billion is reverse re-pos does this mean its short on the market for the next 15 days?

plocequ1's picture

How long will it take for this thing to blow up and be billed to the tax payer?  Ill be sure to pull the Ol' Willy Loman trick. I got my rubber pipe and furnace all ready. I am not paying one red cent of this Debt.

Anonymous's picture

How did you know that the new currency is RED?

I'll bet you ARE ONE OF THEM!?!?!?

;)

Anonymous's picture

well thats what Money Market funds are for I suppose, so the Fed can pretend to not have bilked the taxpayer !!

Psquared's picture

GAO Auditor: I'm here to see your books.

BB: They are over there, ... no I mean in here, ... oh hell, I think those are the ones Hank took with him ... maybe we have copies.

GAO Auditor: says here you have 2.23 Trillion in assets.

BB: Yep, got those on the cheap ... oh ... I mean ... at a firesale ... oh ... I mean bought them in an arms length transaction. They're worth a bundle.

GAO Auditor: well, lets just see about that. Hmm... those MBSs over there; you paid 100 cents on the dollar?

BB: Yes sir, we sure did.

GAO Auditor: [marks in his book, worth = 5 cents on dollar] Whats next?

BB: Well, we've got these foreign denominated swaps we paid 110 cents on the dollar.

GAO Auditor: Are those Euros?

BB: [sweating profusely] well, yeah.

GAO Auditor: [marks in his book, worth 7 cents on the dollar] Whats next there Mr. Bernakey?

BB: [now in shirtsleeves wiping his brow] Well, we've got these Bear Stearnes, FNM, FRE, and Lehman Brothers instruments.

GAO Auditor: Where did you get those? You are not supposed to have those.

BB: Found them ....

GAO Auditor: What size jumpsuit do you wear?

Anonymous's picture

Wonderful. If only the jumpsuit part was true.

Anonymous's picture

Tyler,
What is the $ 1.6 Trillion that the New York Times mentioned in one of their debt bomb articles - that they say is due in March this year ? Does not match with data you present above....""A maturity profile of the Fed's assets indicates a skewed maturity distribution. Of a total of $2 trillion in dated assets, $132 billion mature in under 15 days, $226 billion in under 1 year, and $976 billion in under ten years."" Could you help understand what the NYT refers to here ?
See NYT links for debt graphics below..

http://www.nytimes.com/imagepages/2009/11/23/business/20091123_RATES2_gr...

http://www.nytimes.com/2009/11/23/business/23rates.html

chindit13's picture

You've just got to love 44:1 leverage and a maturity profile that wipes out the Fed capital if rates on the mid to long end of the curve move up 30 pips.  Maybe Ben should have kept last years "profit" instead of kiting a check over to Timmy.  Oh wait...Ben can just print new capital and buy the bejesus out of whatever part of the yield curve he needs to keep in line!  Problem solved.

plocequ1's picture

Thats the 64,000 question. How long can BennyB. Keep printin money?

Ned Zeppelin's picture

That is exactly the question I was interested in asking: at what point as rates escalate is the Fed's equity wiped out as the value of the interest-bearing debt moves lower? The housing MBSs for one were all purchased during a time of historically low rates.  Due to the Fed's deliberate balance sheet opacity, we do not have a detailed list of all of the "assets" and therefore can only guess at valuations.

I suppose the argument will be they intend to hold to maturity and therefore do not need to mark to market.  Of all the organizations who could make that argument, the Fed would be the most credible, since if it needs money, it doesn't need to sell anything, it just revs up the Epson.

 

BlackBeard's picture

Just fucking pop already bubble bentard!

Anonymous's picture

We need to prevent the FED from offloading their junk to Fannie and Freddie.

Tom123456's picture

ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. cheap vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers