Banks and insurance companies largely stayed away from Freddie Mac's sale of $500 million worth of risk-sharing mortgage bonds. "It's difficult for banks to invest in this; the risk weightings would matter to them," said Kevin Palmer of Freddie Mac. "We did meet with some banks, but it's unclear what the risk weighting would be," he added, which could raise issues for banks concerned with how some proposed formulas under Basel III would weigh the assets.

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