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Interesting note from Bruce Krasting:
"The Federal Reserve has taken an unusual step this week. To my knowledge the action is without precedent. There was no prior announcement or discussion preceding the new measures. By itself, this is atypical for Bernanke's Fed. Ben doesn’t like to surprise markets. He did this time (I'm sure he personally approved the move). Some details and thoughts on what it might mean....
....the Fed has established a new 2.5% margin on all MBS dollar rolls. From the Journal:
The Federal Reserve said it will be increasing collateral requirements on 21 primary-dealer banks in transactions dealing with mortgage-backed securities, in a move that would be aimed at securing an extra layer of protection against settlement risks with its counter parties."
http://brucekrasting.blogspot.com/
Krasting makes some suggestions regarding significance of this and they aren't positive...
"The Federal Reserve has taken an unusual step this week. To my knowledge the action is without precedent. There was no prior announcement or discussion preceding the new measures. By itself, this is atypical for Bernanke's Fed. Ben doesn’t like to surprise markets. He did this time (I'm sure he personally approved the move). Some details and thoughts on what it might mean....
....the Fed has established a new 2.5% margin on all MBS dollar rolls. From the Journal:
The Federal Reserve said it will be increasing collateral requirements on 21 primary-dealer banks in transactions dealing with mortgage-backed securities, in a move that would be aimed at securing an extra layer of protection against settlement risks with its counter parties."
http://brucekrasting.blogspot.com/
Krasting makes some suggestions regarding significance of this and they aren't positive...