Replies

So it's a Fannie Mae 4.0% 30 year bond of which the price is plummetting because lots of bondholders are selling them all at once thus putting downward pressure on the price.

Do I have that right?

And thank you again for your help.

65 posted on 05/27/2009 1:12:48 PM PDT by Lurker (The avalanche has begun. The pebbles no longer have a vote.)

I believe that is right. Don’t take me as an expert on this, though.

http://www.mortgagenewsdaily.com/mortgage_rates/blog/

67 posted on 05/27/2009 1:32:55 PM PDT by Petronski (In Germany they came first for the Communists, And I didn't speak up because I wasn't a Communist...)

So it's a Fannie Mae 4.0% 30 year bond of which the price is plummetting because lots of bondholders are selling them all at once thus putting downward pressure on the price.

Those would be one of the worst investments possible (at that interest rate) because of inflation and default risk. There are basically zero investors planning to hold those for 30 years at 4%. Instead they are all speculating, planning to sell theirs to the ultimate greater fool, Bernanke, who will buy them in order to force those long rates lower. He has no choice having painted himself in the corner. If he gave up that plan, mortgages would immediately spike to 20%

73 posted on 05/27/2009 1:53:55 PM PDT by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)

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