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Home » Store » News » Fannie Mae’s Capital Shortfall Expected to Make Some Room in MBS Market for Other Investors

Fannie Mae’s Capital Shortfall Expected to Make Some Room in MBS Market for Other Investors

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Investors in agency MBS should get ready for a surge in available product as Fannie Mae’s capital problems are expected to force the government-sponsored enterprise to scale back its portfolio purchases over the next year or so. Analysts expect the giant GSE will let some investments run off its books and may even look to sell some assets in order to rebuild a capital shortfall that will result from a $9 billion hit to earnings.…
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