Fannie Mae-No Politics (FNMA)

[Phisherman]

Fed buys $5 billion in agency-backed debt
12/05 03:24 PM
NEW YORK (MarketWatch) -- The Federal Reserve Bank of New York bought $5 billion in debt sold by the big mortgage-finance agencies Friday, the first purchase of what may total $100 billion. Dealers submitted $12.9 billion in debt issued by Fannie Mae (FNM:$0.8499,$-0.0201,-2.31%) , Freddie Mac (FRE:$0.84,00$-0.04,00-4.55%) and the Federal Home Loan Banks maturing in 2009 and 2010. The auctions are expected to be weekly and have the goal of making mortgage loans to individuals more affordable and available. Based on the expected lifetime of the program, the Fed may purchase $2.5 billion a week, Bank of America strategists estimated in a research note Thursday.