Grupp: Huvudforum
Fed
Counting the currency swaps with the foreign central banks, the Fed has now committed more than half of its combined securities and loan portfolio of $832 billion, Crandall noted. "The Fed won't have run completely out of ammunition after these operations, but it is reaching deeper into its balance sheet than before."
So they swap out their bad assets for good assets and sell them, but after 28 days they have to buy back their bad assets?
Buy them back with what?
What if they can't buy them back?
Busken kommer att bli 15billion man istället för 10
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n its newest program, the Fed will lend up to $200 billion of Treasury securities for 28 days to primary dealers in the bond market (existing lending programs are strictly overnight). The new term securities lending facility will accept as collateral many kinds of mortgage-backed securities, including federal agency debt, Fannie Mae and Freddie Mac (agency) residential-mortgage-backed securities, and AAA-rated private-label residential mortgage-backed securities.
Securities that are not highly rated or securities that are under a credit watch for possible downgrading are not accepted by the Fed. The Fed will monitor the price and creditworthiness of the collateral every day and could demand alternative collateral at any time.