Official sector shunning US mortgage agency debt

Despite the implicit government guarantee being made explicit last week, official institutions seem keen to sell paper issued by Fannie Mae and Freddie Mac, the two government-sponsored enterprises (GSEs) that insure half of the US's home loans.

The White House on 30 July signed into law a bill granting the US Treasury the power to bail out the GSEs. But figures out Thursday show central banks with accounts at the Fed are reducing their holdings in Fannie Mae and Freddie Mac debt.

The Fed's

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.