The New York Federal Reserve has halved the external manager lineup for the agency mortgage-backed securities purchase program it launched in November.
The New York Fed retained BlackRock as its primary provider of risk and analytics support and Wellington Management for trading, settlement and as a secondary provider of risk and analytics support, while terminating PIMCO and Goldman Sachs.
A news release said the changes weren’t performance related but provided no further information on why BlackRock and Wellington emerged as preferred external managers over PIMCO and Goldman. Spokeswoman Deborah Kilroe wasn’t immediately available for comment.
According to the news release, “the agency MBS program has matured since it began in January, and the New York Fed has had time to further develop its internal analytical and operational expertise in this area.”