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Treasury May Sell $142B MBS

The U.S. Department of Treasury may begin selling off a $142 billion portfolio of mortgage-backed securities it acquired during the financial crisis.

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.

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