Comments on: RBA Buys $780 Million in Residential Mortgage-Backed Securities

By: Pat Donnelly

Pat Donnelly — Sun, 12 Apr 2009 04:56:53 +0000

This was not written by the Dan Denning we know and admire.
What is going on? A health issue?

By: Ross

Ross — Thu, 24 Apr 2008 01:08:45 +0000

RBA/US/UK swapping RMBS reminds me of former COMECON country barter trade and we all know how asset qualities & the economies there ended up. The only collateral that Reserve Banks can touch without devaluing their currency are those close to being risk free. This Euro-Yen-RMB vs USD-UKP-AUD divergence thing can only end in tears all round. The Chinese know from their history that inflation will be their undoing too so count them with the Europeans you mention. The criticism of how the Japanese mismanaged deflating their bubble is largely a cheap shot by the pump primers who have no idea of how to do anything but re-inflate.

By: Diggin it!

Diggin it! — Thu, 24 Apr 2008 00:18:00 +0000

This is early intervention by the RBA in an attempt to reduce the impact of an American style credit collapse [it won`t work]we to have inflation and deflation problems,we to have inflated property values,we to have over extended mortage holders,and to add salt to the wound our interest rates are stilling going up maybe 75 basis points before they have to turn around. The general public think it can`t get much worse, their wrong!!

By: kage

kage — Wed, 23 Apr 2008 14:43:43 +0000

They're repos Dan. You only get to count the ones that are outstanding.
After all "it is not hard to do the math on this one."

By: Jonathan

Jonathan — Wed, 23 Apr 2008 11:16:35 +0000

The real question will be what these MBS packages will be worth when the seller has to re-purchase them, and if, in 360 or so days, the seller will have the liquidity or reserves to complete the re-purchase transaction.