solvency risk is not something that investors worry about a lot, if they do at all.
Since March, the Fed has added a significant amount of higher-risk assets to its balance sheet. These include corporate bonds, municipal bonds, and loans to small business through the Main Street Lending Program. These all have default risk — and according to the Fed, the size of holdings could grow from $200 billion currently to as much as $2.3 trillion if necessary.
"Although the technical insolvency of the nation's central bank may not have tremendous economic consequences, falling into a negative net worth situation could have significant political implications for the Federal Reserve," Bryson said. To be sure, more than half of the Fed's $7 trillion balance sheet is made up of assets with zero credit risk. The $4.3 trillion in Treasuries is backed by the full faith and credit of the US government, and as such does not face the prospect of default. The fact that investors are still buying Treasuries with near-recordEven other large components of the balance sheet carry strong immunity.
Wells Fargo? That bastion of honesty and fair dealing? That Wells Fargo?
I like the words Fed and insolvent in the same sentence
será que começou?
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:
Belgique Dernières Nouvelles, Belgique Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Welcome to the future of dining halls: reservations, delivery, and robots - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Awesome!
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »
Senator Durbin requests Fed probe card networks - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. pravi_Bosiljcic Eliminating GREED, a great start.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »
Amazon may invest in Reliance Retail, a key backer of JioMart - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. In case we've forgotten, earlier last year Amazon has a stake in Adiya Birla's More. Soon to be total domination of India's online retail. India should know he is in IP violations. He is using mine illegally. What you see, Amazon sad site, is illegal use of my IP. He never came to it. Amazon should be sued by anyone for making false impressions about intellectual property. What he has, was acquired by German communists with spying. Legally he could not implement that.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »
TIMELINE: TikTok may be bought by Microsoft after huge pressure from Trump administration - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. People will end public deception media Bloomberg.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »
Why the housing market may not see a V-shaped recovery - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. CLICK BAIT POST
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »