New York Fed to Buy Up to $2 Bln of Agency CMBS Next Week

In late March, the New York Federal Reserve announced it would make its first purchase of commercial mortgage-backed securities.

The New York Federal Reserve has updated its schedule for the purchase of commercial mortgage-backed securities on its official website, revealing that it intends to buy $2 bln worth of agency CMBS next week.

The first purchase, dated 14 April, for Fannie Mae Delegated Underwriting and Servicing securities will amount to $1,500 mln.

The other one, scheduled for 16 April, for Ginnie Mae Project Loans will be settled for $500 mln.

The Fed noted that the operation schedule and parameters could be subject to change.

Electronic boards display the days loss to the Dow Jones Industrial Average (DJI) above the floor of the New York Stock Exchange (NYSE) in New York, U.S. (File) - Sputnik International
US Major Stock Indexes Rise on Optimism Over Gov't Rescue Bill and Fed Reserve's Stimulus Promise

In late March, the Federal Open Market Committee (FOMC) instructed the NY Federal Reserve Bank to expand System Open Market Account (SOMA) holdings of agency mortgage-backed securities to prop up the market.

On Thursday, the Fed announced it would funnel an additional $2.3 trillion into critical segments of the U.S. economy in a bid to make loans more available for entities and persons hard hit by the coronavirus.

The United States has recorded 466,396 cases of the COVID-19 infection, with 16,703 total deaths and 26,522 total recoveries, according to Johns Hopkins University as of 10 April, 4:27 pm.

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