<t>I dont know if you have found your answer yet, but there is actually a very simple way to explain this. A very simple illustration will help. Take a 100 dollar bond with a 10% coupon payment or $10.The coupon payment is always constant. Now if market rates change to 9%, the value of the bond goes...

<t>Hey guys, I was hoping for some insight and opinions on the recent market conditions over the last few years with regards to Federal Reserve market involvement vs size of the Fed balance sheet. If you look back over the last few years (starting in late 2008) it seems as if the active presence of ...

<t>Hey guys, Can you please evaluate my hypothesis and tell me what your thoughts on it are? Also, if my understanding of anything is incorrect please let me know. Okay here goes;I have been claiming since QE2 was announced last summer that the US economy is headed in the crapper. Based on yestedays...

<t>Can you guys please explain the difference between QE1 and QE2 a little futher?I thought in QE1, the Fed was buying mortages from the banks. Essentially, this was what the TARP program was orginally supposed to do. However, once the bank purchased the mortages why would they put the money back in...

<t>mmautner, I'm relatively new at this, but I believe the reason for the 5 to 6 year maturity focus is because the average 30 year loan is refinanced in 5 to 6 years (as of the last 10 or so years) so this is what the rate for 30 year mortgages is based on. Thus if you lower the 5 to 6 yr yield, al...

<t>Hey guys, thank for the insight. As usual I have a few more questions and some comments. Honeyoak, Can you explain what the Fed is doing differently than the bank of England specifically? When you say Open Market Operations, I dont understand what you mean. I thought that since the LIBOR rate was...

<t>Hello everyone, I am new to the forum and after much reading have decided to join. I have learned a tremendous amount and look forward to participating in discussions. The reason for my post is that I reviewed the latest money supply reports from the St. Louis Federal Reserve Office and the one m...