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Update for March 11, 2008
"Another exciting day ahead. This morning, in an effort to inject liquidity and break the freeze in the credit markets, the Fed announced a new lending instrument for banks, which allows Mortgage Backed Securities to be used as collateral. Mortgage Backed Securities have basically just been upgraded by the Fed. This news has caused volatile changes in both the Stock and Bond markets so far today.
For now I will recommend floating, as Mortgage Bonds trade above an important floor of support. However, I will be keeping a close eye on stocks as well. If they should rally even higher, it could add some selling pressure to mortgage bonds."
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