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Guest vicmac64

Fed To Buy Back Debt From Crisis Struck Banks

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http://www.bloomberg.com/apps/news?pid=206...p;refer=economy

Does this mean the Fed , BOE , ECB are buying back the sub prime loans at full price?

No.

First of all, the Fed are not buying anything - they're merely accepting AAA MBs as collateral for very short-term loans to the major financial organisations.

Secondly, the collateral is not accepted at face value but is written down by a fair percentage to balance the perceived level of risk of these securities.

Edited by whoami

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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