Freddie Mac-No Politics (FMCC)

[Onemanband]

Freddie Mac (FMCC +1.3%) boosts its risk-sharing efforts, taking out a policy with Arch Capital Group (ACGL -0.8%) to cover up to $77.4M of losses on a pool of $22.5B worth of mortgages it funded last quarter.
"It's groundbreaking," says Freddie's Donna Corley. "It's a huge source of capital and a different source of capital."
Freddie already relies on U.S. mortgage insurers for those loans with less than 20% down payments, but this turn to global reinsurers - who have more diversified exposures - will allow for far stronger counterparties in the event of another housing crisis.