Overseas investors buy Fannie, Freddie debt
By Deborah Levine
Last update: 10:31 a.m. EST Jan. 9, 2009
NEW YORK (MarketWatch) -- Foreign official and private investors increased their holdings of so-called agency debt in the latest week, the first increase in 14 weeks, possibly encouraged by the Federal Reserve's own purchases of debt issued by Fannie Mae (FNM:Fannie Mae
News , chart , profile , more
Last: 0.76-0.03-3.29%
10:44am 01/09/2009
Delayed quote dataAdd to portfolio
Analyst
Create alert Insider
Discuss
Financials
Sponsored by:
FNM 0.76, -0.03, -3.3%) , Freddie Mac (FRE:FRE
News , chart , profile , more
Last:
Delayed quote dataAdd to portfolio
Analyst
Create alert Insider
Discuss
Financials
Sponsored by:
FRE, , ) , and other housing entities. Agency debt held by the Fed in custody for foreign investors increased by $700 million, according to data compiled by the Fed released late Thursday. That's the first increase, and followed last week's small decrease, since early October, when custody holdings went into freefall, said Lou Crandall, chief economist at Wrightson ICAP, in a research note. "It remains to be seen whether foreign official holdings have actually stabilized, or whether this is just a brief lull in the long-term liquidation that began last summer," he said. The Fed bought $10.2 billion in assets from the agencies earlier this week, the first steps in a program designed to lower mortgage rates and stabilize the housing market.
