The Fed as Distressed Investor
Fascinating article over at Bloomberg detailing all the distressed assets that the Fed took onto its balance sheet during the financial crisis. Among other things, it appears that the Fed will be a beneficiary of the recent moves at Ambac, since ISDA has decided that the Wisconsin partial-bankruptcy triggered Ambac CDS. But the article also suggests the Fed is now exposed to the commercial real estate market, which one of our co-bloggers has been warning might be the next big problem area.
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