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Some analysts say its shrinking portfolio — a "runoff" — contributed to the stock sell-off in late 2018.
More notable, however, is the committee's announcement that it plans to reinvest the principal payments on the Fed's mortgage-backed securities (MBS) and agency debt in Treasurys, thereby implicitly capping the Fed's securities holdings at current levels and ending the passive tightening from the runoff of its portfolio.
"Unless you have access to real information, you can't look at lease runoff or cash flow from the portfolio" or many other factors.
without a runoff.
Stream runoff is exceedingly rare.
(Portfolio) 32.
"Our strategy is portfolio, portfolio, portfolio".
The Fed has slowly been winnowing that $4 trillion portfolio by allowing up to $50 billion in bonds to mature each month, but officials appeared to agree in January that the balance sheet runoff should end this year.
Portfolio theory?
PORTFOLIO photograph.
(Portfolio) 23.
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