BOSTON – The Federal Home Loan bank of Boston said yesterday that losses on its private-label mortgage-backed securities created a $4.2 million loss for its second quarter.
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The loss, compared to a $71.4 million net for the same period last year, was created by $211.1 million in write-downs for the quarter.
The biggest risk on the Boston Bank’s balance sheet is a $3.2 billion portfolio of Alt-A mortgage-backed securities. Most of the Bank’s Alt-A investments, $2.5 billion, are junk-rated securities, the Bank said.
The Boston Bank had a loss of $73.2 million for 2008, caused mostly by $339.1 million in charges on private-label MBSs.
