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NYSE: Freddie Mac (FRE) & Fanny Mae (FNM)

Maskhadov · 2008-03-19 20:46:22

Both are shareholder-owned companies whose objective is to make sure mortgage money is available for home buyers in America. Did their stock just go up with the $30billion released by the Fed ?

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19-03-2008 9:46pm

#1

Maskhadov

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Both are shareholder-owned companies whose objective is to make sure mortgage money is available for home buyers in America. Did their stock just go up with the $30billion released by the Fed ?

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#2 20-03-2008 11:56pm
Minder

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The collateral for the loans is Mortgage backed securities. 28 day loans where the Federal Reserve has the power to call in the loan - so more of a permanent situation than the 28 days would suggest. Covert nationalisation of the mortgage sector.

Did their stock go up - no. Exchange one illiquid asset for another liquid asset.

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