Low rates on Fannie debt may reflect a sagging world bond market, with some European bonds being issued at negative interest rates; to date, Freddie has sold $4 billion in reperforming loans through SLST deals.
The latest stress tests provide a window into the risk retained by the GSEs, and therefore, into how much capital they'll need to survive the next economic crash.
The latest FHFA directive is something of a mystery. In separate 8-Ks, both Fannie and Freddie point out that no employees currently receive a base salary of more than $600,000.
The success of the mortgage giant’s settlement with creditors depended on its assertion that the sale of its assets was part of its reorganization plan rather than Chapter 11 proceedings.