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Fed Balance Sheet Hits New Record On Major MBS Purchases Over Past Month

 January 14, 2010 05:39 PM

Total Federal Reserve balance sheet assets for the week of January 13 hit a new all time record high of $2,226 billion ($37 billion higher compared to the prior month, and a $11 billion increase sequentially). Fed assets consisted of:

  • Securities held outright: $1,856 billion (an increase of $49 billion MoM, resulting from a $45 billion increase in MBS and $4 billion in Agency Debt), or a $11 billion increase sequentially.
  • Net borrowings: $165 billion. This is notable as it is the first sequential increase since the peak of the financial crisis. A fortnight ago this number was at $163 billion. Also notable among other H.3 data is that the monetary base declined by $62 billion to $1.95 trillion sequentially,
  • Float, liquidity swaps, Maiden Lane and other assets: $205 billion, a minor increased from the prior week, based on a flat CPFF, a $2 billion reduction in FX liquidity swaps, offset by an increase in "other assets" of $2.5 billion. A notable addition here is the brand new column of AIA Aurora and ALICO Holdings, the Fed's brand new AIG assistance program, which has maxed out at $25.1 billion.

[Related -American International Group Inc (AIG): Current Weakness Offers A Buying Opportunity]

Foreign holders were at $2,951 billion, a $11 billion decrease from the prior week. Hello "Direct Bidder"?

[Related -American International Group Inc (AIG): Buy This 'Hated' Company While It's Still An Incredible Bargain]

Currency in circulation was $923 billion, with a total of $1,950 billion in the monetary base and $1,027 billion in excess reserves with F.R. banks (a number that dropped by $85 billion in the past month). Indicatively there was $1,080 billion in MBS and Agencies on the Fed's balance sheet, implying the currency/MBS holdings coverage sunk to a new record low of 85.5%.



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