Federal Reserve Balance Sheet Update: Week Of February 25 - Just $45 Billion Left In Quantitative Easing

Tyler Durden's picture

The Federal Reserve's assets were at $2.27
trillion as of February 25, jumping by $6 billion sequentially. 

  • Securities
    held outright: $1,975 billion (an increase of $62.6 billion MoM,
    resulting from $59 billion increase in MBS and $3 billion in
    Agency Debt), or $8 billion increase sequentially. 
  • The fed has completed $169.1 billion of $175 billion in the agency MBS program, or a 97% completion, and 96% complete with purchases of Agencies.
    The Fed has completed $1.21 trillion of its $1.25 trillion MBS debt
    purchase program, or 97%, through February 25. There is now just $45 billion left before Quantitative Easing is over.
  • Net
    $103 billion. The monetary base increased by $81 billion in the past
    fortnight to $2.14 trillion. The ratio of total assets to Monetary Base
    declined slightly to 1.06x.
  • Float,
    liquidity swaps, Maiden Lane and other assets: $191
    billion. The CPFF program was at $7.7 billion. FX liquidity swaps are now at zero: we are carefully keeping an eye on this metric as any increase presently would indicate banks are again experiencing a dollar funding shortage. Maiden Lane I
    and Maiden Lane II increased and were $27.2 and $15.5
    billion, while Maiden Lane III as always continues pretending it has value and came flat at $22.4 billion.

Custody foreign securities holdings increased by $5.6 billion to $2,964 billion.

The Fed extended the duration of its holdings over the past two weeks. The chart below demonstrates the most recent maturity distribution of Fed Assets as of February 25.

The change is presented below: Approximately $30 billion in Under 15 day maturiting securities rolled, of which Term Auction Credit was the biggest constituent. The biggest increase was in MBS, for almost $60 billion over the past two weeks, all of it naturally in the over 10 year category.

The Atlanta Fed provides the following breakdown of the most recent Fed balance sheet activity. Note to dramatic reduction in TALF activity.

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SteveNYC's picture

The Wall St. bailout, in broad daylight.

alexdg's picture

QE2 : She'll be coming around the mountain... errr... ocean of liquidity?


Bearish News's picture

When will QE 2.0 begin? It's the question. Bernanke was funny this week, talking about how the private markets will take over. Yeah, they're just dying to take over the entire MBS market from a guy with bottomless pockets.

ZeroCool's picture

Primary Dealers are hiring!

geopol's picture

45 Billion,,,

Thats a chip shot,,now what do we do??


ZerOhead's picture

We wait for our ship to come in... strange... looks like it's heading to Wall Street again.


geopol's picture

What the fucks new is getting old..


CONners's picture

The emptying of this bucket of Fed money will probably be as momentous as the one emptied last October.

buzzsaw99's picture

The countdown to qe2 continues. Bernanke can never stop buying MBS until he owns them all.

ZerOhead's picture

The BB plan

Step one. Buy all the MBS's you can from friends and others for 100 cents on the dollar.

Step two. Sell back same for pennies to friends and loved ones.

Step three. Create liquidity crisis that causes 100% MBS default.

Step four. Have friends exercise repo option on underlying R.E. assets.

Step five. Zimbabwe the dollar down the crapper to 'restore' liquidity.

Step six. Get handsomely rewarded for job well done by the nations new landlords!

Step seven. Receive Congressional Medal of Honor. 

geopol's picture

Step eight:

Make ZerOhead the chairman of the Nobel Prize...


ZerOhead's picture

Thanks for the vote but I'm not smart enough to understand why they give peace prizes to Obama and science prizes to Gore.

geopol's picture

For $700,000.00 a year?? Wing it. Buy Gold and fuck them.. on the other end.......Muhahahahahahahahaha  FRN'S For gold,Muhahahahahahahahahahahaha....Toilet paper

Anonymous's picture

Step Eight -- Get Man of the Century award from Time Magazine.

Anonymous's picture

>>>The Fed has completed $1.21 billion of its $1.25 billion MBS debt purchase program, or 97%, through February 25.<<<

Do you mean trillion here not billion?

DavosSherman's picture

Good read! Amazing how we call trash an asset.

Anonymous's picture

QE is dead! Long live QE! It really takes balls to print so much money without a second thought. Somebody really smart and diligent in the Government or Fed better have confirmed that the supply chain has enough slack, otherwise God help us.

Anonymous's picture

Step 3. Stuff the pig before roasting.


Fish Gone Bad's picture

I remember reading (in school) that "a war broke out".  The professor let it be known that "wars do not break out", there is a lot that happens up to the point that war breaks out.  I keep thinking that any day now, "a depression is going to break out".  Everyone on ZH sees that it is here already, but the MSM (and public radio) are all talking about the recovery.  But there is no recovery. Am I the only person who sees desperately poor unemployed individuals?

So one day, a depression will break out, and everyone will be surprised because our great leader, the first black president, will have worked so very very hard to rescue the economy. 

You get the message.  All of our leaders are great men, who have done great things, etc etc etc.

Ned Zeppelin's picture

It's the Janitorial Presidency. Cleanup in Aisle 5.

glenlloyd's picture

you say $45 billion like it's the change in my pocket....it's a mad mad world.

faustian bargain's picture

yeah finally. That $45b is my bailout, I can just feel it. Come on, big money. My turn now.




What. Why are you laughing.

Anonymous's picture

1,25 = MBS + FADS ?
I thought they want to buy 1,25T of MBS only...
Are sure about it ?

Ned Zeppelin's picture

I for one will be glued to the screens to see what happens in the agency MBSs. If there is no market for private purchases of MBSs at current rates, then mortgage rates must go higher.  What's there right now? A Treasury backstop for losses until 2012, expiring long before the debt instruments themselves.  Higher rates and a barely breathing, fragile housing market do not mix. 

Trouble ahead, trouble behind.

Gimp's picture

There are over $600 Trillion in garbage derivative instruments floating around worldwide. Is the Fed going to buy all of it and then shred???

Anonymous's picture

The Fed's balance sheet is a bundle of joy compared to the wonders held by the ECB, where they were willing to accept investment grade assets rated by a single agency (rating arbitrage extraordinaire ensued). BTW, as someone reasonably involved in the secondary market for CDOs, I can tell you that the assets in Maidan Lane II have rallied from their lows, in sympathy with the broader rally of risk assets

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