The U.S. Treasury released details on the legacy securities public-private investment program (PPIP) capital activity.
The report showed the funds have drawn-down roughly $20.4 billion of the total capital committed or 69.3% of total purchasing power.
This is the fifth quarterly report on PPIP activity. Under the program, the Treasury has committed $22.1 billion of equity and debt in public-private investment funds (PPIFs) established by private sector fund managers to buy eligible assets.
The fund managers and private investors have also committed capital to the funds. PPIFs have eight-year terms that can be extended for consecutive periods of up to one-year each, up to a maximum of two years.
To qualify for purchase by a PPIF, the securities must have been issued prior to 2009 and have originally been rated triple-A minus or an equivalent rating by two or more nationally recognized statistical rating organizations — without ratings enhancement and must be secured directly by the actual mortgage loans, leases, or other assets.
The quarterly report said that Treasury has received roughly $314 million in net cumulative equity distributions, about $85 million in cumulative interest payments and approximately $237 million in cumulative debt principal payments from the PPIFs as of Dec. 31.
The total market value of non-agency RMBS and CMBS held by all PPIFs was around $21.5 billion as of Dec. 31. Roughly 81% of the portfolio holdings are non-agency RMBS and 19% are CMBS.