U.S. Funds Own $3.4 bln in Mortgage-Backed Securities

The Treasury Department released on Friday its quarterly Legacy Securities Public-Private Investment Program (PPIP) report. The release showed the Treasury’s PPIP held as of Dec. 31, $3.4 billion of toxic mortgage-backed securities.Based on the report’s data, roughly 87% of the portfolio holdings are private residential MBS, or $2.97 billion, while 13% of the portfolio consist of commercial mortgage-backed securities, or $440 million.

The public funds were set up by the Treasury department to purchase toxic mortgage-backed securities from financial institutions but they have been delayed significantly in making the purchases.

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