The Federal Reserve is set to halt its purchases of mortgage-backed securities at the end of March, and officials are counting on foreign sovereign-wealth funds to buy the securities and keep the housing market funded. Foreign investors might be reluctant, however, because many lost big during the mortgage-market meltdown. "I don't think it will be enough to fill the hole," said Ajay Rajadhyaksha, head of fixed-income strategy for the U.S. at Barclays Capital.

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