The chart below shows the Federal Reserve's holdings of
agency securities along with the
agency securities used as collateral in tri-party repos.
The sale of Dresdner Bank's Global
Agency Securities Lending business is part of Commerzbank's strategy to focus on its core markets and activities.
Government and
agency securities, and to arrange corresponding sale and repurchase agreements between its own account and foreign and international accounts maintained at the Bank.
government
agency securities, smaller-sized bank obligations or low credit-rated corporate investment vehicles.
Treasury and
agency securities levels had been declining since 2005, but the recession reversed the trend.
In addition, precisely the better capitalized banks in recent years have been acquiring the bulk of liquid Treasury and
agency securities. This pattern, in turn, seems to reflect that it has been the banks with high risk-based capital ratios that also have had relatively high leverage ratios and have been most able to grow and accommodate deposit inflows.
Treasury and
agency securities sufficient to pay the debt service on the bonds.
Treasury purchases continued through the end of October 2009, and the
agency securities were purchased throughout the first quarter of 2010.
government and federal
agency securities. These assets, which include government-guaranteed collateralized mortgage obligations and mortgage pass-through securities, rose nearly 24 percent.
The Company amortizes and accretes premiums and discounts associated with purchases of
agency securities into interest income over the estimated life of such securities based on actual and projected CPRs using the effective yield method.
In addition to the largely anticipated maturity extension program announced by the Federal Open Market Committee (FOMC) in September, the Committee altered its reinvestment strategy on
agency securities. Instead of reinvesting principal payments and prepayments from agency debt and agency mortgage-backed securities (MBS) in Treasury securities, the new directive is for those funds to be reinvested in agency MBS.
AGNC expects to use the net proceeds from this offering to finance the acquisition of
agency securities, non-agency securities (including credit risk transfer securities), other mortgage-related assets and hedging instruments and for other general corporate purposes.
