Mortgage bonds issued by Fannie Mae and Freddie Mac are gradually disappearing, MarketWatch says. The volume of debt issued by the housing agencies is at its lowest level year-to-date in 13 years.
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Total issuance is at $328.3 billion through Monday, down 39% from the $538.3 billion issued during the same period last year, according to data provider Dealogic. The number of deals is at its lowest level since 2007.
“The U.S. government wants them to get out of mortgage business. It wants to eliminate the risk to taxpayers that mortgages default,” said Hugh Lamle, president of M.D. Sass Investors Services.
