Changes may increase prospect of big purchases by Fannie, Freddie

12/28/2009 | Bloomberg

Analysts at Credit Suisse said changes by the Treasury Department to increase portfolio caps and capital backstops for Fannie Mae and Freddie Mac likely will result in more purchases by the companies of delinquent mortgages from securities they guarantee. "This announcement increases the prospect of large-scale voluntary buyouts by removing the portfolio cap hurdle and helping funding by potentially increasing debt-investor confidence," wrote Mahesh Swaminathan and Qumber Hassan, debt analysts Credit Suisse.

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