The Federal Housing Finance Agency released detailed information on how much the GSEs pay to issue their popular credit-risk transfer debt notes and the types of investors that it has been attracting. The FHFA’s cost estimates included Fannie’s Connecticut Avenue Securities program and Freddie’s Structured Agency Credit Risk program, which have accounted for most GSE risk-transfer activity so far. The estimated cost of each credit-risk debt issuance depends on how private investors and the GSE divvy up the risk as well as the expected default rate and prepayment speed for the reference pool. At the low end of the scale, Fannie conceded an estimated 5 to 6 basis points of guarantee fee income in its second....