NY Fed Sells Off Rest of Maiden Lane II Portfolio; Morgan Stanley Raises $450 Million for New Fund
March 2, 2012
There are additional signs of emerging investor interest – and perhaps more importantly, actual capital – for plowing into mortgage-related bonds, residential and commercial alike. Earlier this week, the Federal Reserve Bank of New York used a competitive process to sell off the remaining $6.0 billion of securities in the Maiden Lane II portfolio to Credit Suisse Securities. The New York Fed said the move will result in full repayment of the $19.5 billion loan it extended to ML II and generate a net gain for the U.S. taxpayer of about $2.8 billion, including $580 million in accrued interest on the loan...
The creation of a U.S. sovereign wealth fund could grease the skids for an end to the conservatorships of Fannie Mae and Freddie Mac.
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