Banks are picking up their purchases of agency mortgage bonds - now at a record $1.16T, as...

|By:, SA News Editor

Banks are picking up their purchases of agency mortgage bonds - now at a record $1.16T, as commercial banks look to shore up earnings while lending keeps contracting (1.7% this year). Wells Fargo's Glenn Schultz: The bonds are "viewed as liquid placeholders that can be later replaced with loans."