HousingWire reveals the 50 fastest-growing companies in housing economy

HousingWire reveals the 50 fastest-growing companies in housing economy

Inaugural 2014 HW Fast50 ranks public, private companies on revenue growth

Chinese investors remain an X Factor for the US housing market

So what does this mean for homeowners and buyers?

Judge throws out Fannie and Freddie investors’ lawsuit

Decision favors Federal government
W S

US MBS reinvestment issue "overblown," Pimco says

/ Print / Reprints /
| Share More
/ Text Size+
Big investors in the $5trn mortgage-backed securities market are unlikely to reinvest cash from Fannie Mae and Freddie Mac as the companies strip bad loans from the bonds, Scott Simon, a managing director at PIMCO, said on Friday. A lack of reinvestment may surprise analysts who for weeks have predicted principal would be dumped back into the market and support prices, which affect consumer rates. This would soften any blow as the Federal Reserve ended its $1.25trn MBS purchase program in March, analysts have said. But the reinvestment issue is "overblown," Simon said on the Pacific Investment Management Co. Web site. The Fed, US Treasury, Freddie Mac, Fannie Mae and Asian central banks probably won't reinvest in MBS as the mortgage finance giants address delinquent loans, he said.

Recent Articles by Diana Golobay

Comments powered by Disqus