Monday, October 3, 2011

What is opertation Twist

The government plans to buy longer term bonds and sell short term bonds. This will drive long term yields down. AGNC makes money on long term housing loans.  The money the government raises on selling short term debt will go to purchase long term debt notes.  The bond year duration is not yet known. Here is a video that explains how the Operation Twist works or how they intend for it to work:

<iframe width="560" height="315" src="" frameborder="0" allowfullscreen></iframe>

No comments:

Post a Comment