Comments on: Foreign Central Banks Convert Massive Amounts of Agencies into Treasuries http://housingdoom.com/2008/10/10/foreign-central-banks-convert-massive-amounts-of-agencies-into-treasuries/ Thu, 24 May 2012 01:57:19 +0000 hourly 1 http://wordpress.org/?v= By: Tobby http://housingdoom.com/2008/10/10/foreign-central-banks-convert-massive-amounts-of-agencies-into-treasuries/#comment-14434 Tobby Fri, 10 Oct 2008 19:21:56 +0000 http://housingdoom.com/?p=1700#comment-14434 It's not the ratings of the Agency debt, its the duration. Most GSE debt has a current duration of at least 9 years. Most everyone is fleeing to short term debt right now (less than 6 months). When this financial crisis ends, expect huge investments back into Agency debt, adjusted for the probably tsunami of inflation likely to come of all this. IMOHO we will be back to 8% mortgages in a few years. It’s not the ratings of the Agency debt, its the duration. Most GSE debt has a current duration of at least 9 years. Most everyone is fleeing to short term debt right now (less than 6 months). When this financial crisis ends, expect huge investments back into Agency debt, adjusted for the probably tsunami of inflation likely to come of all this. IMOHO we will be back to 8% mortgages in a few years.

]]> By: John M. http://housingdoom.com/2008/10/10/foreign-central-banks-convert-massive-amounts-of-agencies-into-treasuries/#comment-14433 John M. Fri, 10 Oct 2008 17:24:05 +0000 http://housingdoom.com/?p=1700#comment-14433 twist - I call it a strong positive -- an almost inexhaustible supply of mortgages to buy back ;) "Pathetic," says Igor, who doesn't seem to have much of a sense of humour today. twist -

I call it a strong positive — an almost inexhaustible supply of mortgages to buy back ;)

“Pathetic,” says Igor, who doesn’t seem to have much of a sense of humour today.

]]> By: twist http://housingdoom.com/2008/10/10/foreign-central-banks-convert-massive-amounts-of-agencies-into-treasuries/#comment-14432 twist Fri, 10 Oct 2008 16:21:58 +0000 http://housingdoom.com/?p=1700#comment-14432 John- How do you think this will affect the plan for the government to buy up and/or refi bad mortgages? John-

How do you think this will affect the plan for the government to buy up and/or refi bad mortgages?

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