People Get Ready! For The Federal Reserve to actually withdraw its massive stimulus.
I generally discuss that negative impact of rising mortgage rates on the housing market, but today I am focusing on the decline in agency mortgage-backed security prices due to rising mortgage rates.
Here is the uniform MBS price for a 3.5% coupon security. It is falling like a rock with anticipated Fed monetary tightening.

And duration risk is going to the moon! (That is, accelerating rapidly).

FNCL 3.5 coupon MBS has a WAC of 4.206 and a WAM (or WARM) of 359. Not to mention a factor 0.997.

At least energy prices are cooling thanks to China grinding to a halt with the latest Covid epidemic.

I wish The Fed would back off its allegedly ambitious tightening and soothe me.
But hold on, Powell and The Fed are coming with their sword of destruction.
- HAPPENING: Shooter’s Grandpa Says Someone Else Bought Him Weapons and Taught Him How to Fire
- Why did the West Only Go to Shit After WW2 and Not Before?
- It Is Worse Than We Thought
- Barack Obama absolutely buried by Jason Whitlock.
- This is what happens if you give up your guns: Australia announces TWO YEARS in prison for violating COVID rules
- The Police are Not Your Friends
- Hardest landing is GUARANTEED.
- School shootings were rare until the government put a target on the backs of our children in 1990. What happened in 1990?
- Get ready The tsunami of Layoffs is coming!
- It’s Real! Dark MAGA Incoming
Views: 19