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Banks Rush To Buy Agency MBS
Commercial banks have increased their purchases of agency mortgage-backed securities by 50% since the end of 2010, reports Bloomberg.
Commercial banks have increased their purchases of agency mortgage-backed securities by 50% since the end of 2010, according to data from the Federal Reserve. As of May 4, MSB purchases hit a record $1.16 trillion, as banks seek to boost earnings with bonds backed by Fannie Mae, Freddie Mac and Ginnie Mae over government debt, which pays less.