Fed Sees Demand Rise for Residential Mortgage-Bond Financing
Wall Street dealers saw demand to finance purchases of residential mortgage-backed securities increase in the three months through August, according to the Federal Reserve.
About a quarter of dealers reported increased demand for funding of mortgage securities backed by government-supported finance companies, or agency bonds, the central bank said today in its quarterly survey of senior credit officers. About two- fifths reported an increase for non-agency debt.
No other major changes in market behavior were reported by the 22 banks interviewed, the Fed said in a summary of the report.
“Responses to the September survey pointed to no significant changes in the credit terms applicable to important classes of counterparties over the past three months,” the central bank said.
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