Here's where expert economists think housing is going

Washington is protecting buyers right out of homeownership

BPC Housing Commissioner: Give borrowers a chance to fail

2 reasons the single-family rental securitization market won’t exceed $20 billion

$1 trillion market? Not even close.
W S
Investments / The Ticker

Mortgage-bond price tumbles amid increased risks

Fannie, Freddie witness significant drops

stock art
/ Print / Reprints /
| Share More
/ Text Size+

According to an article in Bloomberg, prices of a new type of U.S. mortgage bond are tumbling as investors discover the risks in the market from Wall Street banks. 

The $8.2 billion of risk-sharing securities sold in the last year by government-controlled Fannie Mae and Freddie Mac can shift their losses from homeowner defaults to bond buyers. One slice of a deal issued in May traded at 95.7 cents on the dollar yesterday, down from 99.7 cents at the end of last month, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Source: Bloomberg
Read full story

Recent Articles by Brena Swanson

Comments powered by Disqus