This is what the markets have been waiting for.
* * * * * J B K * * * * *
San Francisco
Freddie Mac said yesterday that it would buy "substantially all" loans with payments late by 120 days or more from its securities in the next month. Fannie Mae said later that it will "increase significantly" its buyouts, setting a less aggressive timeline. The value of Freddie Mac's delinquent loans is $70 billion, while Fannie Mae has $130 billion of the debt, according to Citigroup Inc. data.
"This is going to be a wad of cash coming into the fixed- income markets and it's not immediately clear where it's going to be reinvested," said Jim Vogel, head of agency-debt research at FTN Financial in Memphis, Tennessee.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aiUaoec0WvwA
