Pimco's Gross Says U.S. Will Rescue Fannie, Freddie

Discussion in 'Wall St. News' started by Daal, Aug 6, 2008.

  1. #21     Aug 20, 2008
  2. #22     Aug 20, 2008
  3. #23     Aug 20, 2008
  4. Freddie Mac draws demand for debt at higher yieldReuters, Tuesday August 19 2008


    "Freddie Mac had little trouble selling $3 billion of debt on Tuesday in an important test of the U.S. housing finance company's ability to raise funds amid fears that a government bailout is imminent.

    Any government bailout could wipe out shareholders and severely hurt holders of the companies' preferred stock. But debt holders, who already see explicit government support for the companies, would be untouched.

    Investors said orders for Freddie Mac's debt on Tuesday totaled at least $3.9 billion, suggesting yields have risen enough to compensate for volatility sparked by credit market unrest and turmoil surrounding its business of investing in and guaranteeing U.S. mortgages. Government backing that was strengthened last month bolstered the debt, they added
    #24     Aug 20, 2008
  5. Fannie, Freddie Bailouts May Hinge on Debt Rollover

    Aug. 20 (Bloomberg) -- Fannie Mae and Freddie Mac's success in repaying $223 billion of bonds due by the end of the quarter may determine whether they can avoid a federal bailout


    Rising borrowing costs and evidence that demand for their debt was waning last month led Treasury Secretary Henry Paulson to seek the authority to pump unlimited amounts of capital in Fannie and Freddie in an emergency. Freddie paid its highest yields on record in a debt sale yesterday amid concern that credit losses are depleting the capital of the beleaguered mortgage-finance companies.

    Rolling over the debt ``is the single most important factor to their ability to remain liquid,'' said Moshe Orenbuch, an analyst at Credit Suisse in New York. ``So far, they've been able to do that.''

    Investors in Asia, the biggest foreign owner of Fannie's $3 trillion of bonds, are reducing their share of purchases, potentially increasing the need for Paulson to make good on his pledge to backstop the companies


    The Treasury will probably be forced to buy as much as $30 billion of preferred shares in both Fannie and Freddie by the end of next month, according to Bill Gross, who manages the world's biggest bond fund at Pacific Investment Management Co.
    #25     Aug 20, 2008
  6. Move over Fannie and Freddie, Ginnie Mae eyeing first place


    .....Programs that back loans in Ginnie Mae securities, such as the Federal Housing Administration, are also growing after the U.S. Congress passed legislation expanding their reach.

    I don't think very many people are aware of the impending disaster being created.

    Are you folks aware of what is going on here????

    "The full effect of federal government efforts to 'nationalize' part of the subprime market is yet to occur," said Walter Schmidt, head of mortgage bond strategy at FTN Financial in Chicago, wrote in a note to clients. Ginnie Mae market share topped 30 percent, up from less than 10 percent a year earlier, his data show.

    What do you think the cost of this effort will be? I don't even want to know.

    Someone please tell me who supplies the parts for the fiat printing presses.
    #26     Aug 21, 2008
  7. Paulson Wins Support From Buffett, Gross on Takeover (Update1)

    By Pierre Paulden

    Sept. 8 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson won endorsements from some of the world's biggest investors for his decision to seize control of Fannie Mae and Freddie Mac.

    Pacific Investment Management Co.'s Bill Gross, manager of the world's largest bond fund, said Paulson took ``necessary steps'' to put the companies into a government-operated conservatorship. Billionaire investor Warren Buffett said Paulson ``did the exact right thing,'' while central bankers in Asia, among the largest buyers of Fannie and Freddie debt, said they supported the decision.


    #27     Sep 8, 2008
  8. [​IMG]


    We are getting there!!!
    #28     Sep 8, 2008