Analysts Plot Impact of GSE Buyouts of Defaulted Loans from MBS, See Opportunities for Market
February 19, 2010
Mortgage-backed securities analysts welcomed last week’s announcements by Fannie Mae and Freddie Mac in which the two government-sponsored enterprises addressed widespread expectations about their purchases of seriously delinquent loans from outstanding MBS. In addition to resolving uncertainty about MBS prepayment speeds in the coming months, the buyouts will put about $60 billion of cash in the hands of MBS...