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No private institutions with hard cash are going to be willing to take the portfolio because of the opportunity cost of investing that money at higher rates of
by slv77 4y ago
No private institutions with hard cash are going to be willing to take the portfolio because of the opportunity cost of investing that money at higher rates of returns. Any institutions that would need to borrow to buy the portfolio would need to borrow at higher interest rates and earn lower rates generating a loss each month. There is now way to take the portfolio without a discount and not have a loss.
If there was a way out of this without a loss the bank wouldn’t be insolvent (bankrupt).