Mortgage-Backed Security

Fed Buys $10.2 Billion in Agency MBS 

The Federal Reserve Bank of New York wasted no time after announcing Monday morning that it had begun buying mortgage-backed securities guaranteed by Fannie Mae [stock FNM][/stock], Freddie Mac [stock FRE][/stock] and Ginnie Mae. By just Wednesday, the Fed had purchased a whopping $10.2 billion in illiquid mortgage-backed securities from the agencies, according to a statement released Thursday.