What is the investment strategy that is employed?
Investment managers will largely employ a passive buy and hold investment strategy in accordance with investment guidelines prescribed by the Federal Reserve. Purchases are guided by general MBS market conditions, including, but not limited to, supply and demand conditions, market liquidity, and market volatility. The agency MBS program will involve the outright purchase of a total of $1.25 trillion in agency MBS by the investment managers on behalf of the Federal Reserve by the end of the first quarter of 2010. The pace of purchases will moderate gradually to promote a smooth transition in markets. The program will gradually reduce the average weekly purchase amounts of agency mortgage-backed securities, starting with purchases conducted during the reporting week beginning Thursday, September 24, 2009. The pace of purchases may be adjusted, as necessary, based on input from the investment managers about market conditions and the impact of the program. The investment managers are requi
