Banks ‘throw in towel’ to add most mortgage bonds in 18 months

The biggest banks are adding government-backed mortgage bonds at the fastest pace in 18 months, breaking with an unusual pattern in which they shunned the debt as their loan portfolios shrank during the economic slump. Large US commercial banks added $51.4bn of so-called agency mortgage-backed securities in the two weeks ended July 21.

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3d rendering of a row of luxury townhouses along a street

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