Federal Reserve Bank of New York Plans Agency CMBS Purchases for Next Week

Posted on 04/10/2020


The Federal Reserve Bank of New York (New York Fed) will purchase up to US$ 2 billion in agency commercial mortgage-backed securities for the week starting April 12, 2020. The Federal Reserve Bank of New York will purchase up to US$ 1.5 billion in agency CMBS on April 14, 2020 and up to US$ 500 million on April 16.

Schedule from Federal Reserve – dated April 10, 2020

OPERATION DATE OPERATION TIME SECURITY TYPE SECURITY DETAILS OPERATION TYPE SETTLEMENT DATE MINIMUM LOT SIZE MAXIMUM PURCHASE AMOUNT*
            (MILLION) (MILLION)
4/16/2020 11:00 AM Ginnie Mae Project Loans GNR pass-through or front sequential, WAL 3+ years, prepay penalty does not accrue to tranche Multiple Price 4/21/2020 $5 $500
4/14/2020 11:00 AM Fannie Mae Delegated Underwriting and Servicing (FNMA DUS) 6-month open period, WAL 7+ years Multiple Price 4/17/2020 $5 $1,500
4/9/2020 11:00 AM Fixed-rate Freddie Mac 10-year K-series Deals A-2 Class, WAL 7+ years Multiple Price 4/15/2020 $5 $750
4/9/2020 11:00 AM Fixed-rate Freddie Mac 10-year K-series Deals A-1 Class, WAL 4+ years Multiple Price 4/15/2020 $5 $250
4/7/2020 11:00 AM Fannie Mae Delegated Underwriting and Servicing (FNMA DUS) 6-month open period, WAL 7+ years Multiple Price 4/13/2020 $5 $2,000
4/3/2020 11:00 AM Ginnie Mae Project Loans GNR pass-through or front sequential, WAL 3+ years, prepay penalty does not accrue to tranche Multiple Price 4/6/2020 $5 $500
4/2/2020 11:00 AM Fannie Mae Delegated Underwriting and Servicing (FNMA DUS) 6-month open period, WAL 7+ years Multiple Price 4/3/2020 $5 $1,500
3/31/2020 11:00 AM Fixed-rate Freddie Mac 10-year K-series Deals A-2 Class, WAL 7+ years Multiple Price 4/1/2020 $5 $1,000
3/27/2020 11:00 AM Fannie Mae Delegated Underwriting and Servicing (FNMA DUS) 10/9.5, WAL 7+ years Multiple Price 3/30/2020 $5 $1,000

From April 2, 2020 to April 8, 2020, the New York Fed purchased US$ 109.352 billion of agency mortgage-backed securities. The previous week the purchases totaled US$ 144.571 billion.

The New York Fed is authorized by the Federal Open Market Committee (FOMC) to buy and sell agency mortgage-backed securities (MBS) for the System Open Market Account (SOMA) to the extent necessary to carry out the most recent FOMC directive. The Federal Reserve began to add agency MBS to the SOMA portfolio again in March 2020 to support smooth functioning of mortgage markets.

Keywords: Federal Reserve System.