New York Fed Cuts PIMCO, Goldman Sachs From Agency MBS Program

The Federal Reserve Bank of New York has streamlined the set of external investment managers for the agency mortgage-backed securities purchase program, reducing the number of investment managers from four to two. The New York Fed has retained Wellington Management Co. LLP for trading, settlement and as a secondary provider of risk and analytics support, and BlackRock Inc. as the primary provider of risk and analytics support.

Gone from the investment manager roster are Pacific Investment Management Co. and Goldman Sachs Asset Management.

The New York Fed says the changes are not performance-related and that it had anticipated making make adjustments to its use of external investment managers as it gained more experience with the program.

J.P. Morgan remains custodian for the program, which is intended to support the mortgage and housing markets.

SOURCE: New York Fed


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