The Federal Reserve has hired BlackRock, Goldman Sachs Asset Management, PIMCO and Wellington Management to purchase a total of up to $500 billion of mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae, a Fed statement said.
The managers would employ “a passive buy-and-hold investment strategy in accordance with investment guidelines prescribed by the Federal Reserve,” according to the release.
The Fed is also expected to announce the hiring of a custodian for the acquisition program, but a contract is “not yet final,” according to the news release.
The federal acquisition program, intended to reduce the cost and increase the availability of credit for housing purchases, is expected to be launched in early January, the release said.
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