The U.S. Department of Treasury may begin selling off a $142 billion portfolio of mortgage-backed securities (MBS) it acquired during the financial crisis, The Wall StreetJournal reports. The Treasury is planning to sell up to $10 billion in agency-guaranteed MBS per month.
The Treasury is expected to generate a profit of between $15 billion and $20 billion from the sales. The department’s investments are mostly 30-year, fixed-rate mortgage securities backed by either Fannie Mae or Freddie Mac. The Treasury also acquired a smaller amount of 15-year fixed-rate mortgage securities.
Click here for the story from The Wall Street Journal.
Click here for additional coverage from Reuters.