Public-Private Investment Program (PPIP)

Program Purpose and Overview

On March 23, 2009, Treasury announced the Legacy Securities Public-Private Investment Program (PPIP), which was designed to support market functioning and facilitate price discovery in the markets for legacy Commercial Mortgage-Backed Securities (CMBS) and non-agency Residential Mortgage-Backed Securities (RMBS).

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Key Facts

  • PPIP was designed to help restart the markets for legacy mortgage-backed securities.
  • These markets help ensure that credit remains available for households and businesses, large and small.
  • Treasury originally committed approximately $22 billion of equity and debt financing to nine Public-Private Investment Funds (PPIFs).
  • On September 30, 2014, Treasury received a final $1.8 million distribution from PPIP. Treasury has fully recovered its original investment of $18.6 billion in PPIP, plus a net positive return of more than $3.9 billion through interest, and proceeds in excess of original equity capital, including warrant proceeds.
  • PPIFs no longer can deploy capital and make new investments as of December 2012 although they may continue to manage these investments for up to five additional years.