State Street Global Advisors (SSgA), the investment management business of State Street Corp., engaged investment manager Smith, Graham & Co. Investment Advisors to assist in providing asset management services for the U.S. Department of the Treasury’s MBS Purchase Program.
As a financial agent of the Treasury, SSgA manages a roughly $180 billion portfolio in GSE MBS issued by Fannie Mae and Freddie Mac.
Smith Graham will assist with portfolio analysis and reporting, develop cash flow projections, conduct stress-testing scenarios, as well as assess risks to the portfolio.
Under the Housing and Economic Recovery Act of 2008 (HERA), the Treasury was given the authority to buy GSE securities to offer stability to the financial and housing sectors. The Treasury’s MBS portfolio was acquired in late 2008 and throughout 2009. The HERA authority to buy new securities for the portfolio expired last December.
“The opportunity to work with State Street Global Advisors to help manage the mortgage-backed securities portfolio for the Treasury Department is a great privilege,” said Gerald Smith, chairman and chief executive officer at Smith Graham.
“We are delighted to be collaborating with Smith, Graham & Co. to help the Treasury manage its investments and protect the taxpayer,” said Brian Kinney, managing director at SSgA.
Smith Graham is one of the U.S.’s largest African-American owned fixed-income investment managers.