US The US government’s efforts to jump-start its toxic asset resale programme by luring investors with debt financing has prompted criticism that private funds will not shoulder enough of the risk. But it may be the best way to bring markets back to health and making good on government investments.
A new US Treasury programme aims to find private-sector buyers for troubled loans and securities that continue to clog banks’ balance sheets. A few investors who buy into pools of assets using government financing may hold them to maturity, later splitting their returns with the government.
