In 2008, the Federal Reserve started an unprecedented programme of bond buying in an attempt to shore up financial markets and restore calm to the global financial system. Over the next nine years, the central bank built up a portfolio worth $4.5 trillion of debt and has kept the balance steadily by reinvesting securities as they mature.
[klarman]
Q2 hedge fund letters, conference, scoops etc
In 2017, policymakers announced that they would begin unwinding this colossal portfolio of fixed interest securities. Starting small, the Fed has been gradually phasing out the reinvestment of maturing securities since the end of 2017.
Policymakers set an initial cap of $6 billion per month for Treasuries and $4 billion for agency mortgage-backed securities (MBS),...
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