Fannie Mae Unable to Grow Its Portfolio Much In Weakened Condition and More Competition
November 14, 2008
Fannie Mae’s record third-quarter loss announced this week makes clear that the company – and its rival government-sponsored enterprise Freddie Mac – is in no position to deliver additional liquidity to the MBS market through its investment portfolio. “Our extremely limited ability to issue callable or long-term debt at this time ... makes it difficult to increase the size of our...