Two more reasons to sell US Treasury bonds: Fannie Mae and Freddie Mac.
January 20th, 2010 | Dan Amoss | 41 comments | ContinuedAll Posts Tagged With: "gses"
GSEs Fannie Mae & Freddie Mac on Death Watch
It’s clear now that Mr. Market has called Henry Paulson’s bluff. Fannie Mae (NYSE:FNM) fell 26% yesterday while cousin Freddie Mac (NYSE:FRE) was off 22%. The death/intervention watch for the GSEs is now round the clock. But what does it mean? And what happens next? As the Barron’s story pointed out this weekend, both companies are effectively insolvent. But the charade continues. One reality check may come very soon. Fannie Mae has nearly US$120 billion in debt that matures shortly.
August 21st, 2008 | Dan Denning | 4 comments | Continued