
(AGENPARL) – gio 23 giugno 2022
June 2022
Liquidity in the Mortgage Market: How does the COVID-19 Crisis Compare with the Global Financial Crisis?
Abstract:
The liquidity strains that contributed to the meltdown of the mortgage market in the Global Financial Crisis (GFC) re-emerged in the Coronavirus 2019 (COVID-19) Crisis. Some of these strains were acute. For example, the dependence of mortgage real estate investment trusts (REITs) on short-term funding amplified market disruption in March 2020. However, other liquidity pressures had only minor repercussions for the overall mortgage market because of reforms since the GFC, a heavy government presence, and strong house prices. The lackluster performance of the private-label mortgage-backed securities market provides a glimpse of how the market might have performed in the absence of the heavy government presence.
Keywords: COVID-19, REIT, Term Asset-Backed Securities Loan Facility (TALF), mortgage market, mortgage servicers, mortgage-backed securities (MBS)
DOI: https://doi.org/10.17016/FEDS.2022.039
PDF:
Full Paper
Last Update:
June 23, 2022
0https://www.federalreserve.gov/econres/feds/files/pap.pdf’>https://www.federalreserve.gov/econres/feds/files/pap.pdf
Fonte/Source: https://www.federalreserve.gov/econres/feds/liquidity-in-the-mortgage-market-how-does-the-covid-19-crisis-compare.htm