Countrywide expansion.The securities trading securities trading, financial activity involving transactions of property such as stocks, bonds, commodities, and currency (see securities). Although the trading of stocks and bonds dates back several centuries in many Western nations, the development of the arm of Countrywide Financial Countrywide Financial Corporation (NYSE: CFC) is a diversified financial marketing and service holding company engaged primarily in residential mortgage banking and related businesses. Corp., the Calabasas-based mortgage lender, will begin trading Treasury debt this year, said Grant Couch, a managing director in charge of trading at the unit. Countrywide Securities, primarily known for trading mortgage bonds and so-called agency debt of Fannie Mae Fannie Mae: see Federal National Mortgage Association. , Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. and the Federal Home Loan bank system Noun 1. Federal Home Loan Bank System - the central credit system for thrift institutions financial institution, financial organisation, financial organization - an institution (public or private) that collects funds (from the public or other institutions) and , plans to begin with a team of five to eight people, Couch told Bloomberg News. The company may "eventually" apply to become a primary dealer, which is a firm that Wades directly with the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , he said. There are now 22 primary dealers. "This is a diversification into what we all recognize now as a growth market," he said. Treasuries are also "a natural fit" because many customers of Countrywide use Treasuries to make bets against the securities the company trades, he said. The number of primary dealers is down from 46 in 1998 amid the consolidation in financial services and, until last year, the reduction in government debt. The Treasury this year has been auctioning more debt to finance a swelling budget deficit that may reach $432 billion this year and $471 billion next year, according to the average estimate of primary dealers surveyed by Bloomberg News last month. Countrywide has increased its share in the $2.3 trillion agency bond market, growing to the 12th largest underwriter so far this year from 23rd in 2001. --Bloomberg News |
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