(Archived Content)
TG-520
To view the report, visit link.
WASHINGTON -- The U.S. Department of the Treasury today released the initial quarterly report for the Legacy Securities Public-Private Investment Program (PPIP). This report includes a summary of PPIP capital activity, portfolio holdings and current pricing, and fund performance. Treasury expects to provide additional information as the program matures in subsequent quarterly reports.
PPIP is designed to support market functioning and facilitate price discovery in the mortgage-backed securities markets, allowing banks and other financial institutions to re-deploy capital and extend new credit to households and businesses. The investment objective of PPIP is to generate attractive returns for taxpayers and private investors through long-term opportunistic investments in Eligible Assets (as defined below) by following predominantly a buy and hold strategy. Under the program, Treasury will invest up to $30 billion of equity and debt in public-private investment funds (PPIFs) established by private sector fund managers for the purpose of purchasing Eligible Assets. The fund managers and private investors will also provide capital to the funds. PPIFs have eight-year terms which may be extended for consecutive periods of up to one-year each, up to a maximum of two years. To qualify for purchase by a PPIF, the securities must have been issued prior to 2009 and have originally been rated AAA – or an equivalent rating by two or more nationally recognized statistical rating organizations – without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets (Eligible Assets).
###