BofA Leads U.S. Banks With Insatiable Demand for Mortgage Bonds
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Big U.S. lenders led by Bank of America Corp. can’t seem to get enough government-backed mortgage bonds, thanks in part to new regulations.
The latest evidence comes via regulatory data for last quarter, which show a $45.3 billion increase among the 50 biggest bank holders, compared with a $10.6 billion gain in Treasuries, Morgan Stanley wrote in a report Thursday. A more timely -- though also less precise -- measure from the Federal Reserve shows a record $1.45 billion across all commercial banks at the end of April.