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A comment on Fed to buy junk bonds, lend to states in fresh virus support. Parent comment

Re:Fed to buy junk bonds, lend to states in fresh virus support by jonas21 on Thursday April 09, 2020 @05:17PM (#22827308)
No. For example, TARP was completely unwound after about 6 years (and ended up making a small profit too).

> On December 19, 2014, the U.S. Treasury sold its remaining holdings of Ally Financial, essentially ending the program. TARP recovered funds totalling $441.7 billion from $426.4 billion invested, earning a $15.3 billion profit

[1] https://en.wikipedia.org/wiki/Troubled_Asset_Relief_Program

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Re:Fed to buy junk bonds, lend to states in fresh virus support by listenallyall on Thursday April 09, 2020 @11:46PM (#22829814)
some quick math... 15.3 over 6 years, about 2.5b/yr, off of $426 invested... just a bit over 0.5% ROI. Meanwhile in late 2008, 10 yr notes were yielding about 2.6%. So the "profit" was about 80% less than the risk-free rate.

https://www.clevelandfed.org/en/our-research/indicators-and-...

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