Bank for International Settlements calls out MBS market liquidity risks

COVID plus large and rapid Fed-funds hikes by The Federal Reserve is having a big impact on market liquidity and, in one case, forcing interest rate sensitive REIT’s to sell MBS positions. In their December 2022 Quarterly Review, The Bank for International Settlements discusses liquidity concerns in the U.S. MBS market.

Click here to read the December 2022 BIS Quarterly Review.