8/27/2008

Debt costs from Fannie Mae and Freddie Mac have hit record highs above Treasuries because of a crisis of confidence in the companies. The situation is also providing Fannie and Freddie with their largest profits on new investments in at least a decade and allows the mortgage giants to offset a portion of credit losses from mortgages they guarantee or own. It also takes some of the pressure off the Treasury to intervene.

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Bloomberg

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