The Federal Reserve (Fed) may reduce its purchases of mortgage-backed securities in an effort to attract outside investors, according to Credit Suisse, Reuters reports.

Mahesh Swaminathan, an analyst at Credit Suisse, said by slowing the rate of its purchases, the Fed could keep MBS prices from becoming “prohibitively tight,” which would make the securities less attractive to investors. He also suggested another reason why the Fed would draw back on its purchases: to conserve some of $1.25 trillion in pledges to help the mortgage market well into next year.

For the complete story, click here.