According to a Bloomberg news story, PIMCO (bond fund), Blackrock (hedge fund), and the New York Federal Reserve are seeking ways to force B of A to buy back mortgage backed securities to the tune of 47 billion.  Reason given; due to credit quality and the failure by Countrywide to properly service loans, they have lost value – “soured.”  What else is new.

Nevertheless, stocks are off 200 and treasuries/mortgage backs have been goosed higher.  Currently, the 10 year note is up 5/32’s while mortgage backs are plus 6/32’s. Shaping up to be a nice day.