Treasury and EDF policy – Financial coverage of the balance of payments – US currency

Until 2007, the GSE had a function: to transfer a fraction of the property debt abroad. For example, a small fraction of US real estate purchases was financed by foreign investors buying securitized debts from GSEs. Private securitization played the same role via MBS, RMBS, CDO amalgamating house, consumer credit, student loans … The transfer Continue Reading