Banking Crisis 2023: How We’re Adapting Our Investing Strategies
We Talk Money
The Fed's Toxic Assets Program
Banks have these, these bond portfolios on their balance sheets. They go to the Fed and say, Hey, Fed, I have these bonds worth 70 cents on the dollar. Can I get a loan for 100 cents on thedollar? And the Fed gives them the loan using their bond portfolio as collateral,. But the bond portfolio is not, it's down. So the Fed is giving them 100 cents onThe dollar for a portfolio worth 70 cents On The Dollar. This this program is meant to be temporary last a year. It is meant for banks to essentially swap their bond exposures and take cash from the Fed.
00:00
Transcript
Play full episode
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
