Fears of end of Fed easing

As the Federal Reserve’s programme of buying mortgage debt edges towards $1,000bn this week, investors are starting to worry about what happens once the central bank starts to slow down and exit from this key plank of its monetary easing policy.

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mbs-thumb.jpg“Many investors treat the three asset classes that the Fed has been buying – Treasuries, agency debt and agency mortgage-backed securities – as very similar,” says Ajay Rajadhyaksha, head of US fixed income strategy at Barclays Capital.