Implicit Guarantees Not Good Enough

Overseas investors lack appetite for Fannie and Freddie debt, selling US$38billion of the GSE paper in December. “Looking at the risk, [GSE bonds are] not so attractive,” he told the news service. “We need a guarantee before we’ll buy.”

But they still are buying US Treasuries…

From

http://www.housingwire.com/2009/02/20/asian-investors-hold-out-for-explicit-guarantee-on-gses/

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