Not mine, since I sold my FNM, and am moving my cash from my prime money market into CDs. By the way, most MBS is owned by foreigners. When the value goes down, how will they react? Maybe they’ll buy Tnotes instead of MBS.
I hope everyone reading this realizes that the mortgage debt is purchased by money markets. Anyone with money markets not federally insured can lose value if MBS lose value, or Fannie Mae files bankruptcy. But I’m sure the government will bail out Fannie Mae. That will require more dollar printing, and higher inflation.
You can get the same yield of a MM by buying CDs. The rates are around 5% for a 4-month CD. So there’s no need to take the risk in a money market in a brokerage account. Vanguard has tons of CDs. Money market in banks are FDIC insured, I think.
