GSEs Have Been Spinning Their Wheels as Debt Costs Rise in Turbulent Funding Market
November 6, 2008
Since Fannie Mae and Freddie Mac were placed into federal conservatorship in early September, the two government-sponsored enterprises have done fairly little to fulfill their regulator’s pledges of providing billions of dollars of support to the mortgage market, due at least in part to a widening of spreads that have jacked up their debt funding costs. “The conservatorships just...