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Home » Store » Taxable » Fannie Reduces Duration Gap to Just 2 Months

Fannie Reduces Duration Gap to Just 2 Months

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After taking a lot of heat for allowing its portfolio duration gap to climb to an unusually large negative 14 months back in August, Fannie Mae announced last week that its gap fell to a small plus two months in November. The announcement should silence critics of the GSE, who have suggested that Fannie had trouble managing its exposure to interest rate risk.
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