Monthly Archives: March 2015

Without ‘Patience’ … Will the Fed Trim Its MBS?

Without ‘Patience’ … Will the Fed Trim Its MBS?

Now that the Federal Reserve has removed “patient” from its forward guidance, investors need to think about what this means for 1) the trajectory of short-term interest rates and 2) the potential exit strategies for the Fed’s $4.5 trillion in holdings of U.S. Treasuries, Agency debt and Agency mortgage-backed securities (MBS).
‘Patience’ Dwindling at the Fed

‘Patience’ Dwindling at the Fed

The Fed is likely to drop the word “patient” from its policy statement on March 18th, code that the FOMC won’t be hiking interest rates until after its next couple of meetings. In recent remarks to Congress, Fed Chair Janet Yellen was careful not to prejudge the FOMC’s decision at the upcoming meeting.
Can Millennials Propel Housing Even Further?

Can Millennials Propel Housing Even Further?

National U.S. home prices have increased by over 27% from the bottom in early 2012, helping to improve consumer balance sheets and drive a strong recovery in a variety of housing-related assets. Going forward, we believe that analyzing the potential demand from young adults is critical to understanding the potential further upside in the residential sector.
Just the JOLT the Fed Needs?

Just the JOLT the Fed Needs?

Over the past year, U.S. payrolls expanded by about 3.3 million persons, yet job openings increased by about 1.1 million persons to a 14-year high of about five million, according to the latest Job Openings and Labor Turnover (or “JOLT”) report from the Bureau of Labor Statistics. In other words, demand for labor outstripped supply by 1.1 million persons.