Once the US Bailout fund reaches a decent size of actual purchases, you will see everyone wanting to calibrate their illiquid MBS-related stuff to those reported trades.
It will be mostly regression models at first. There will be dozens of journal papers from academics. Wiley will have several new titles. Quants will put experience with calibrating to that data set on their resumes -- hoping to land either one of the coveted new positions at PIMCO and Blackrock as TARP fund analyst, or Rentech''s new Black Mamba fund (secret investment objective: Gaming the TARP fund). Finally, Rentech achieves their goal of having a $100 Billion hedge fund. The fund will achieve impressive
returns and provoke general outrage as its goal will be generally known and it will be perceived as financially raping the taxpayer. This raping (oh yeah, arbitrage) opportunity will prompt a string of copy-cat funds, again with thinly disguised objectives. After a particularly volatile week in the markets, the Treasury will seize Black Mamba, shut it down as "destabilizing", and write legislation prohibiting the related trading strategies as ''manipulative''. Someone will write a paper titled "Oops! we did it again -- what went wrong with TARP calibration"
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