Past Peak Hawkishness (guest: Barry Knapp)
The Market Huddle
00:00
Mortgages Are Long Term Assets, Right?
The Fed is using the tool so aggressively when they get to the zero lower bound, and then they refuse to unwind it. Jamie diamond would probably buy, you know, i don't know how mony he would buy from them. Those are great assets, those bonds. The problem of the mortgage, as you knows, it can get cold at any time. But not if it's a two or two and a half % coup on,. It can't. So that's quidity effect. And we should talk about liquidity, wi'll bet, but mortgages are long duration assets.
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