Download or read book Large Scale Asset Purchases by the Federal Reserve written by Joseph Gagnon and published by DIANE Publishing. This book was released on 2010-05 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since Dec. 2008, the Fed. Reserve¿s traditional policy instrument, the target federal funds rate, has been near zero. In order to further ease the stance of monetary policy as the economic outlook deteriorated, the Fed. Reserve purchased substantial quantities of assets with medium and long maturities. This paper explains how these purchases were implemented and discusses how they can affect the economy. The purchases led to meaningful and long-lasting reductions in longer-term interest rates (IR) on a range of securities, incl. securities that were not included in the purchase programs. These reductions in IR primarily reflect lower risk premiums, including term premiums, rather than lower expectations of future short-term IR. Tables.
Download or read book Large scale Asset Purchases by the Federal Reserve written by and published by . This book was released on 2010 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since December 2008, the Federal Reserve’s traditional policy instrument, the target federal funds rate, has been effectively at its lower bound of zero. In order to further ease the stance of monetary policy as the economic outlook deteriorated, the Federal Reserve purchased substantial quantities of assets with medium and long maturities. In this paper, we explain how these purchases were implemented and discuss the mechanisms through which they can affect the economy. We present evidence that the purchases led to economically meaningful and long-lasting reductions in longer-term interest rates on a range of securities, including securities that were not included in the purchase programs. These reductions in interest rates primarily reflect lower risk premiums, including term premiums, rather than lower expectations of future short-term interest rates. -- Term premium ; portfolio balance ; zero bound ; monetary policy ; duration ; bond yield
Download or read book The Federal Reserve System Purposes and Functions written by Board of Governors of the Federal Reserve System and published by . This book was released on 2002 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides an in-depth overview of the Federal Reserve System, including information about monetary policy and the economy, the Federal Reserve in the international sphere, supervision and regulation, consumer and community affairs and services offered by Reserve Banks. Contains several appendixes, including a brief explanation of Federal Reserve regulations, a glossary of terms, and a list of additional publications.
Download or read book Federal Reserve s Large Scale Asset Purchase Programs written by Stefania D'Amico and published by . This book was released on 2013-02-18 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book An Analysis of the Effects of Federal Reserve Large Scale Asset Purchases 1 and 2 in Comparison to Traditional Monetary Policy Tools written by Sinead A. Knightly and published by . This book was released on 2013 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Financial Market Effects of the Federal Reserve s Large Scale Asset Purchases Scholar s Choice Edition written by Julie Remache and published by Scholar's Choice. This book was released on 2015-02-16 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: This work has been selected by scholars as being culturally important, and is part of the knowledge base of civilization as we know it. This work was reproduced from the original artifact, and remains as true to the original work as possible. Therefore, you will see the original copyright references, library stamps (as most of these works have been housed in our most important libraries around the world), and other notations in the work. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work.As a reproduction of a historical artifact, this work may contain missing or blurred pages, poor pictures, errant marks, etc. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.
Download or read book The Federal Reserve s Balance Sheet written by and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Large Scale Asset Purchases Had Large International Effects written by Christopher J. Neely and published by . This book was released on 2010 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book How Stimulatory Are Large Scale Asset Purchases written by Vasco Cúrdia and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A History of Large Scale Asset Purchases Before the Federal Reserve written by Benjamin Remy Chabot and published by . This book was released on 2014 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors find that between 1870 and 1913, large open market purchases of Treasury securities made by the U.S. Treasury Department narrowed the yield spread between Treasury bonds with high interest rate risk (the risk of an investment's value changing on account of interest rate changes) and those with low interest rate risk.
Download or read book Flow and Stock Effects of Large Scale Treasury Purchases written by Stefania D'Amico and published by DIANE Publishing. This book was released on 2011-02 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a print on demand edition of a hard to find publication. Using a panel of daily CUSIP-level data, the authors study the effects of the Federal Reserve¿s program to purchase $300 billion of U.S. Treasury coupon securities announced and implemented during 2009. The authors find that each purchase operation, on average, caused a decline in yields in the sector purchased of 3.5 basis points on the days when these purchases occurred (the ¿flow effect¿ of the program). In addition, the program as a whole resulted in a persistent downward shift in the yield curve of as much as 50 basis points (the ¿stock effect¿), with the largest impact in the 10- to 15-year sector. The coefficient patterns generally support a view of segmentation or imperfect substitution within the Treasury market. Charts and tables.
Download or read book A Large Dimensional Factor Analysis of the Federal Reserve s Large Scale Asset Purchases written by Lasse Bork and published by . This book was released on 2015 with total page 54 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the economy-wide effects of US unconventional monetary policy shocks. A precise identification of the unconventional monetary policy shocks is achieved by imposing zero and sign restrictions on a number of impulse responses from a large-dimensional dynamic factor model. In particular, an unconventional expansionary monetary policy shock is identified as a shock that increases the Federal Reserve's market share of US treasuries and mortgage-backed securities, and leads to an improvement in the real economy and improved credit conditions.I find that an unconventional monetary policy shock significantly drives down the long-term interest rate spread and the credit spread, and improves both the financial market conditions and the commercial and industrial loans activity. Moreover, the impact on the real economy is significant.The roughly $2 trillion purchases of mortgage backed securities by the Federal Reserve Bank avoided a severe downturn according to estimates from a counterfactual analysis.
Download or read book Federal Reserve s Commercial Paper Funding Facility written by Tobias Adrian and published by DIANE Publishing. This book was released on 2010-06 with total page 38 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Federal Reserve (FR) created the Commercial Paper Funding Facility (CPFF) in the midst of severe disruptions in money markets following the bankruptcy of Lehman Bros. on Sept. 15, 2008. The CPFF finances the purchase of highly rated unsecured and asset-backed commercial paper from eligible issuers via primary dealers. The facility is a liquidity backstop to U.S. issuers of commercial paper, and its creation was part of a range of policy actions undertaken by the FR to provide liquidity to the financial system. This report documents aspects of the financial crisis relevant to the creation of the CPFF, reviews the operation of the CPFF, discusses use of the facility, and draws conclusions for lender-of-last-resort facilities. Charts and tables.
Download or read book How the Federal Reserve s Large Scale Asset Purchases LSAPs Influence Mortgage Backed Securities MBS Yields and US Mortgage Rates written by Diana Hancock and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Are Large Scale Asset Purchases Fueling the Rise in Commodity Prices written by Reuven Glick and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Have Large Scale Asset Purchases Increased Bank Profits written by Juan Montecino and published by . This book was released on 2015 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper empirically examines the effects of the Federal Reserve's Large Scale Asset Purchases (LSAP) on bank profits. We use a new dataset on individual LSAP transactions and bank holding company data from the Fed's FRY-9C regulatory reports to construct a large panel of banks for 2008Q1 to 2009Q4. Our results suggest that banks that sold Mortgage-backed Securities to the Fed (“treatment banks”) experienced economically and statistically significant increases in profitability after controlling for common determinants of bank performance. Banks heavily “exposed” to MBS purchases should also experience increases in profitability through asset appreciation. Our results also provide evidence for this type of spillover effect and suggest that large banks may have been more affected. Although our results suggest that MBS purchases increased bank profits, we find only mixed evidence that these were associated with increased lending. Our findings are thus consistent with the hypothesis that the Federal Reserve undertook these policies, at least in part, to increase the profitability of their main constituency: the large banks.
Download or read book The Impact of the Federal Reserve s Large Scale Asset Purchase Programs on Corporate Credit Risk written by Simon Gerard Gilchrist and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Estimating the effect of Federal Reserve's announcements of Large-Scale Asset Purchase (LSAP) programs on corporate credit risk is complicated by the simultaneity of policy decisions and movements in prices of risky financial assets, as well as by the fact that both interest rates of assets targeted by the programs and indicators of credit risk reacted to other common shocks during the recent financial crisis. This paper employs a heteroskedasticity-based approach to estimate the structural coefficient measuring the sensitivity of market-based indicators of corporate credit risk to declines in the benchmark market interest rates prompted by the LSAP announcements. The results indicate that the LSAP announcements led to a significant reduction in the cost of insuring against default risk-as measured by the CDX indexes-for both investment- and speculative-grade corporate credits. While the unconventional policy measures employed by the Federal Reserve to stimulate the economy have substantially lowered the overall level of credit risk in the economy, the LSAP announcements appear to have had no measurable effect on credit risk in the financial intermediary sector.
