The MBS held by two failed banks will soon hit the market; specified pool trades hit record level in March; Fannie increases disclosures on multifamily MBS; LIBOR to live on in synthetic form.
Monthly business volume was up in March, and a handful of sellers grew their agency single-family production in an otherwise calamitous start to the new year. (Includes two data charts.)
Bank holding companies continued to grow their trading-account holdings of MBS and CMBS during the fourth quarter, although industry-leader Chase reduced its portfolio. (Includes data chart.)
It looks like the worst of the bank liquidity crisis could be over. And now questions are being asked: Why weren’t these banks hedged? And who bought their high-quality Treasuries and MBS?
On any given day, a buyer can be found for two of the most liquid assets out there: Treasuries and MBS. But that doesn’t mean they can be sold at a profit. If anything, the bank liquidity crisis reminded us: Don’t put all your assets in one held-to-maturity basket. (Includes data chart.)
The Bank Term Funding Program comes in the wake of Silicon Valley Bank incurring losses on sales of MBS at current prices, which it undertook to pay back depositors.