Because in 2007, there was a massive buildup of household, financial sector, and corporate leverage that all had to
unwind during the financial crisis.
Not exact matches
New to the Fed policy this year was the
unwinding of the bonds that it had purchased
during the
financial crisis, recession and recovery.
Another thing that most investors would look for is a possible
unwinding of the Fed's massive $ 4.5 trillion balance sheet, mostly Treasuries and mortgage - backed securities accumulated
during the
financial crisis in 2008.
Carry trades became heavily
unwound during the 2008
financial crisis as liquidity dried up and investors shunned risk - taking.
Then there's the
unwinding of the Fed's balance sheet — the unprecedented debt load the central bank took on
during the
financial crisis of the previous decade — and that's supposed to put upward pressure on interest rates, too.