fed helicopter money march-april 2020

Tags: finance

• FED QE has dramatically slowed down since 2nd week of March

• Same QE playblock as before, front load the bailout and cut back asset purchases

  

MBS

• Balance of MBS’s have actually fallen
  • https://www.newyorkfed.org/markets/ambs/transaction-summary
• MBS’s take weeks to actually settle
  • Why?
• Boom in mortagage refinancing
  • https://wolfstreet.com/2020/04/29/mortgage-forbearance-balloons-home-sales-plunge/

REPO

• Repo purchases have stalled, big REPO ops are being leftover from a few weeks ago

SPV (special purchase vehicles)

• Technically gets around limits imposed by the Federal Reserve Act FED Powers
• Remained steady at ~162 b
• Composed of:
  • Primary credit
  • Secondary Credit
  • Seasonal Credit
  • Primary Dealer credit
  • Money Market Mutual Fund
  • Paycheck Protection Program

Central Bank Repos

• BoJ largest user
  • 49%
  • 214 bil
• ECB second biggest
  • 32%
  • 142 bil

• 7 days or 84 day maturities