Saturday, Jul 26, 2008
The difference between credit-default swaps on Fannie Mae and Freddie Mac subordinated and senior debt widened.
Bloomberg: Fannie, Freddie Subordinated Debt May Be Cut by S&P (Update4)
July 25 (Bloomberg) -- Standard & Poor's may downgrade the subordinated bonds of Fannie Mae and Freddie Mac, surprising investors who had anticipated the securities would be supported by any Treasury rescue plan
The potential downgrade of the preferred stock isn't as surprising, Jackson said.
``The fact that they lumped the sub debt in there seems questionable,'' Jackson said. ``If we are talking about equity capital being contributed by the government, by any measure that we can come up with, that should protect the subordinated debt.''
Posted by malct @ 03:23 PM (285 views) Add Comment
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