SPDR® Barclays Mortgage Backed Bond ETF
It has been almost a decade since the onset of the worst financial crisis after the Great Depression, and the US Fed has embarked on a monetary path it has never taken before.
In its efforts to revive the US economy from the Great Recession, the US Fed started purchasing US government-backed securities in 2008.
The Fed, in its efforts to normalize policy, announced that it is starting the balance sheet unwinding program soon.
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
Portfolio durations differ from key rate durations, as even though the durations of two portfolios may match, both portfolios may differ in the maturity profiles of the bonds they comprise, which will result in differing key rate durations.