There are, however, two factors that suggest the yield effect will be smaller than calculated. When the US central bank began with the first round of the quantitative/credit easing in autumn 2008, the financial markets were still in panic mode. In the wake of the collapse of Lehman Brothers and the escalating economic crisis, a complete collapse of the financial markets even appeared to be a distinct possibility. The risk premiums for all asset classes were correspondingly high at the time – also for Treasuries. Thanks to its resolute intervention, the Fed was able to restore a certain degree of basic confidence on the market. The probability of a collapse was averted, and the risk premium fell dramatically. Today, in contrast, the risk premium is already very low. The possible yield effect of additional quantitative easing would, therefore,come exclusively via the higher demand for Treasuries (portfolio balance effect). The second factor that suggests yields would fell less strongly than suggested by the NY Fed model is the law of diminishing returns: The more Treasury securities the US central bank already holds, the lower the effect of further purchases becomes. Net for net, we therefore assume that even a massive additional program for the purchase of Treasury securities totaling one trillion USD would lower the yield level by only approximately 25 basis points.