Agency debt will be backed by US government, according to Paulson. Chinese government bought the debt cheap (better yield than treasury)
Investment in Blackstone & Merrill Lynch are different stories. The problem is about talents. Very few people at CIC has the expertise of investment overseas, not much marekt knowledge either. The Singapore sample has been used again and again. This is a urban myth as well. Return for Signapore government is around 9%....
