Effective March 24, 2020
How does the Desk intend to implement the FOMC’s directive to purchase agency commercial MBS?
Effective March 23, 2020, the FOMC directed the Desk at the Federal Reserve Bank of New York to purchase agency commercial MBS (CMBS) on behalf of the SOMA. The Desk will purchase in the open market agency CMBS secured primarily by multifamily home mortgages that are guaranteed fully as to principal and interest by Fannie Mae, Freddie Mac, and Ginnie Mae and that the Desk has determined are suitable for purchase. On March 24, 2020, the New York Fed retained BlackRock Financial Markets Advisory as a third-party vendor to operationalize these purchases and transact with the primary dealers on behalf of the SOMA. BlackRock was selected on a short-term basis to serve as an investment manager after considering their expertise in trading and analyzing agency CMBS in the secondary market, and robust operational and technological capabilities.
The Desk will begin agency CMBS purchases during the week of March 23, 2020. Additional information regarding eligible securities and planned purchase schedules will be published in advance of these purchases.
