GSE Hedging Strategies Could be Compromised Under Derivatives Amendment to Reg Reform
May 7, 2010
An amendment to the Senate’s regulatory reform bill being voted on this week could have the effect of excluding Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks from the $605 trillion privately negotiated derivatives market they tap to help manage their interest-rate exposure. Such a development could severely constrain the hedging strategies of the government-sponsored...