You are here: Home » Reuters » News
Business Standard

Mortgage investors unfazed as Fed balance sheet plan looms

Reuters  |  NEW YORK 

By Richard LeongNEW YORK (Reuters) - The Federal Reserve's plan for shrinking its massive balance sheet envisions a future with no holdings of mortgage bonds, a prospect that could present a significant headwind for an $8 trillion market the U.S. central bank now dominates.Mortgages have modestly underperformed a slow-moving bond market this year, and the sector has seen a steady trickle of outflows of investor dollars, but no stampede for the exits. Investors in the sector by and large remain sanguine, and big players are confident the Fed's glacial pace of portfolio normalization - and ...

This article is no longer available in our repository.

There could be multiple reasons for this.

First Published: Sat, July 15 2017. 00:41 IST