Mortgage MBS Companies ask SEC to Stop Margin Calls and Fed buying.

https://www.google.com/amp/s/seekin...ers-ask-sec-for-rescue-from-margin-call-surge

 

Fed buying screwed up companies who hedged, that's classic.

 

Yep just heard that on CNBC, total screw up

 

That's why it's hard to hold anything but indexes for any period of time.

 

I feel bad for those who wisely hedged against an event like this.

It's not fair.

 

one day old news

 

End the fed.

 

whoops

 

Didn't commercial paper in MBS start that crap in 2008? WTF is with these banks?!?

 

@JesseJamesFinn1, can you explain this:

If I were a mortgage banker or REIT holding mortgage back securities, in the current environment with interest rate falling, my securities should be worth more. Why am I in bad shape unless there are a lot of defaults? And if the Fed is buying my MBS, why should I complain? If it were me, I sell them to the Fed in a heartbeat and laugh all the way to the bank?

OK, so I hedged, meaning bought protections. My protection is now not needed, I should take them off or keep them till expiration and I should be very happy? Like I bought home insurance and my house was safe?

OK, so you say because I borrowed to buy the protections. If I had to borrow to buy the protection, isn't it just bad management and I deserve to be out of business?

As a small time retail trader, I am just too dumb to understand.

Am I making any sense?