Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
Maiden Lane II made a payment on its outstanding loan from the New York Fed, dropping the outstanding balance by about $200 million to $12.4 billion. Also related to Maiden Lane II, AIG appears to have made an offer to buy the securities in the Maiden Lane II portfolio back from the Fed. AIG has reportedly offered $15.7 billion for the securities, which are currently valued at $15.9 billion. If the transaction were to take place, the Fed would still net a $1.5 billion profit. The new schedule for Treasury purchases was released on March 10, and it seems to be more heavily weighted toward the purchase of new assets (as opposed to principal reinvestment from mortgage-backed securities and agency debt) than in previous months. According to the schedule, about $110 billion in purchases will be made in the next month, $80 billion of those being new asset purchases. In other balance sheet news, he European Central Bank (ECB) did not draw on its currency swap line this week. The line has only been lightly used, but this marks the first week since May of last year that the ECB has not conducted any swap operations. Other trends have continued, with asset purchases up $53 billion, excess reserves up $91 billion, and the Supplemental Financing Account down $50 billion.