• 709 days Will The ECB Continue To Hike Rates?
  • 710 days Forbes: Aramco Remains Largest Company In The Middle East
  • 711 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,111 days Could Crypto Overtake Traditional Investment?
  • 1,116 days Americans Still Quitting Jobs At Record Pace
  • 1,118 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,121 days Is The Dollar Too Strong?
  • 1,121 days Big Tech Disappoints Investors on Earnings Calls
  • 1,122 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,124 days China Is Quietly Trying To Distance Itself From Russia
  • 1,124 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,128 days Crypto Investors Won Big In 2021
  • 1,128 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,129 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,131 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,132 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,135 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,136 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,136 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,138 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

  1. Home
  2. Markets
  3. Other

What's Down With Bank Holdings of Mortgage-Backeds?

In the week ended June 15, holdings of mortgage backed securities in large domestically-chartered U.S. banks' investment portfolios dropped an unprecedented $65.0 billion (see chart below). In all candor, I do not have a good explanation for such a large decline in an asset category. Could it be that the regulatory suasion that I wrote about on May 26 (http://www.northerntrust.com/library/econ_research/weekly/us/pc052605.pdf) is starting to affect banks' behavior with regard to the "froth" in some housing markets? If so, the Fed might not have to raise the funds rate as high as some believe in order to get the economic response it is seeking. Just a thought.

 

Back to homepage

Leave a comment

Leave a comment