Federal Home Loan Banks Begin to Face Up To Writedowns on Non-Agency MBS Holdings
January 16, 2009
The 12 Federal Home Loan Banks face the potential for some hefty writedowns stemming from the deteriorating non-agency MBS in their portfolios, but outright devastation seems improbable because actual losses may not be too severe and the system enjoys a federal backstop. And although some FHLBank member institutions are worried they might have to write down the value of...