Here are some sample widgets you could interact with from this dashboard:
What is a Mortgage-Backed Security and why it is important?
A mortgage-backed security (MBS) is a type of asset backed security similar to a bond that is made up of a bundle of home loans bought from the banks/agencies that issued them.Investors in MBS receive periodic payments similar to bond coupon payments.
Government-backed agencies, federal banks and private issuers can issue and guarantee MBSs.
However, a mortgage-backed security is only as good as the underlying mortgages. MBSs played a huge role in the 2008 financial crisis and since then the government has taken significant steps to regulate the mortgage securities market.
In this dashboard, we analyze how the mortgage-backed securities held by the major US banks have changed since the financial crisis. Our analysis includes 5 major US commercial banks: JPMorgan, Goldman Sachs, Bank Of America, Citigroup and Wells Fargo
Mortgage-Backed Securities Held by Federal Banks have also been on the rise - more than doubling from around $0.8 trillion in 2009 to $1.8 trillion now
MBS held by Federal Reserve Banks
Change in MBS held by Federal Reserve Banks
U.S. Commercial Banks Now Hold More MBSs Than Federal Banks
The proportion of MBS held by Federal Reserve Banks to Commercial Banks fell from 92% in 2010 to around 66% for 2011-12 before shooting up to 124% in 2014 as Federal Reserve Banks absorbed a majority of MBSs createdThe trend reversed in subsequent years, though, with the figure shrinking to 88% by 2019
Ratio of MBS held by Federal Reserve Banks to MBS held by Commercial Banks
Notably, the Share Of 5 Major US Commercial Banks Has Seen A Steady Decline Since 2009
Total Mortgage Backed Securities Held/Issued
% of Total Mortgage Backed Securities Held By 5 Major Banks
Total MBSs held by the 5 major commercial banks have gone up from $393 billion in 2007 to around $688 billion.
Despite an increase in the absolute values, the share of these banks in MBS held by commercial banks has gone down from almost 63% in 2009 to less than 37% in 2018
A look at how the contribution of each bank has changed since the crisis:
Bank Of America Remains The Largest Holder Of MBSs, With Almost $350 Billion In These Securities On Its Balance Sheet
BAC Total Mortgage Backed Securities
Bank of America's Share
BAC was arguably one of the least impacted bank in the financial crisis. The bank's MBS portfolio shot up in 2008, increasing from around $163 billion to more than $230 billion thanks to the bank's acquisition of Merrill Lynch.
This metric has gradually increased since then, increasing from $234 billion in 2009 to more than $340 billion in 2018.
BAC contributes around 18% of total MBS held by the commercial banks
MBSs Held By Citigroup Have Remained Around $40 Billion In Value Over The Years
Citibank Total Mortgage Backed Securities