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The Federal Reserve’s Experience Purchasing and
Reinvesting Agency MBS
Remarks at the Bank of England
London, UK

Simon Potter
March 7, 2019
The views presented here are those of the author and do not necessarily reflect those of the Federal Reserve Bank of New York or the Federal Reserve System

Figure 1: Composition of SOMA Domestic
Securities Holdings

Figure 2: SOMA Agency MBS Purchases and the
Primary Mortgage Rate

Figure 3: Agency MBS Daily Transaction Volume

Figure 4: Agency MBS Daily Effective Bid-Ask
Spreads

Figure 5: Weekly Agency MBS Fails

Figure 6: SOMA Portfolio Holdings by Vintage and
Coupon, 2014 vs. 2018

Figure 7: Investment Grade Corporate Credit and
MBS Spreads to Treasuries

Figure 8: Projected Paydown Profile of SOMA
Agency Debt and MBS Principal

Figure 9: Fannie Mae 30-Year Current Coupon
MBS Option-Adjusted Spread to Treasuries