Toxic Asset Fund Gains 27%: Report

NEW YORK ( TheStreet) -- The U.S. Treasury Department is expected to report that its toxic asset funds gained 27 percent since they were created in 2009.

The Treasury will release the data later Monday, according to a report by Reuters.

The Treasury's investment increased to $1.4 billion, according to year end data, the Reuters article stated. In addition, the U.S. Government has used about $5.2 billion of Treasury's equity investments to purchase toxic assets that have gained $1.1 billion for a current total of $6.3 billion.

The funds -- which were created to help stabilize the mortgage-backed securities market along with Troubled Asset Relief Program -- allowed private equity firms to invest in toxic asset funds that were removed in banks with government backing.

The funds are managed run by asset managers such as BlackRock ( BLK), PIMCO, Invesco and Marathon Asset Management.

--Written by Maria Woehr in New York.

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