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Federal Reserve Balance Sheet Update: Week Of October 21
Even as liquidity swaps and CPFF hit a new all time low since inception at $33 and $32 billion, respectively, the Fed's accelerating purchases of securities, mostly MBS and agencies, keep the Fed's balance sheet flat week over week.
Total Federal Reserve balance sheet assets for the week of October 14 of $2,173 billion (unchanged from the prior week). Fed assets consisted of:
- Securities held outright: $1,692 billion
(an increase of $104 billion MoM, resulting from $8 billion in new
Treasury purchases, $84 billion increase in MBS and $12 billion in Agency Debt), or $13 billion increase sequentially - Net borrowings: unchanged at $265 billion, as no update in the current week.
- Float, liquidity swaps, Maiden Lane and other assets: $215
billion,
a $4 billion decrease based on a $8 billion reduction in CPFF and a $8 billion reduction in FX liquidity swaps,
bringing both these to a fresh 52 week low.
Foreign holdings of USTs and MBS hits another all time high of $2.898 billion, an increase of $5 billion from the prior week. Presumably the covert foreign rotation out of MBS and into UST continues.
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Ty, would it be appropriate for me to place a link here to a post that gets closer to the "root cause" of this disaster? Antal Fekete has just posted today on safehaven an article titled "Forgotten Anniversary; One Hundred Years of Legal Tender". The unintended consequences reverberate on and on.
http://www.safehaven.com/article-14877.htm
Feel free to delete this post if this is not the place for it. Thank you in any event for this GREAT site!
I assune you are referring to the public balance sheet. How about it's hidden balabce sheet that no one sees or the secret arrangements it makes with other central banks and other countires. Saying their balance sheet hasn't expanded is like saying I have a big dick, but not allowing anyone to get into my pants to prove it. I can show pictures of my supposed big dick, but until one gets in my pants to confirm one will never know. I highly encourage everyone to depants these thugs with HR1207 and S604. Give Pelosi a call and ask her to take a look at Bernanke's cock.
TD...does this include that nice shopping mall in Oklahoma? Thank you.
Take it from one who has been to that "mall" numerous times, due to significant others never-ending fascination with malls!
That mall is not worth whatever they paid for it. And they will take a loss when they try and sell it too! :-)
Yeah it does - that and the soiled underpants of Team Obama.
Thanks for your consistently great posts and analysis.
It is good to know that MBS securities are guaranteed by Fannie Mae and Freddie Mac...there is absolutely no risk.
From Federal Reserve Bank of NY web site:
FAQs MBS Purchase Program
"What securities are eligible for purchase under the program?
Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are eligible assets for the program. The program includes, but is not limited to, 30-year, 20-year and 15-year securities of these issuers. The program does not include CMOs, REMICs, Trust IOs/Trust POs and other mortgage derivatives or cash equivalents. Eligible assets may be purchased or sold in specified pools, in "to be announced" (TBA) transactions, and in the dollar roll market.
Does the agency MBS program expose the Federal Reserve to increased risk of losses?
Assets purchased under this program are fully guaranteed as to principal and interest by Fannie Mae, Freddie Mac, and Ginnie Mae, so the Federal Reserve's exposure to the credit risk of the underlying mortgages is minimal. The market valuation of agency MBS can fluctuate over time based on the interest rate environment; however, the Federal Reserve's exposure to interest rate risk is mitigated by the conservative, buy and hold investment strategy of the agency MBS purchase program."
Yup, Fannie and Freddie losses will be made good by the taxpayers, who will raise the money by selling debt, which will be bought by the Fed...
How do we know there is even a SHRED of truth in this data? Until the Fed is audited, we DON'T. If the data is unreliable, the analysis means nothing.
The same could be said about virtually all data, could it not GG?