UK Only Article:
standard article
Fly Title:
Fannie Mae and Freddie Mac
Rubric:
America's mortgage-insurance giants are making bigger profits than before the crisis
Byline:
C.R. & T.E.
Location:
LONDON AND NEW YORK
Main image:
20150221_fnp511.jpg
FANNIE MAE and Freddie Mac may sound like a couple living in suburban America but they are in fact two of the country’s more unusual listed companies. With a government-backed guarantee, Fannie and its sibling Freddie buy mortgages from lenders and package them for resale.
Looking at the headlines, it may seem that both Fannie and Freddie are in financial trouble again. On February 19th Freddie Mac reported a sharp decline in its net income last year, which fell from $48.7 billion to $7.7 billion. The next day Fannie Mae also announced a big fall in earnings. Falling market interest rates forced the pair to declare losses on the derivatives they hold as a hedge …<div class="og_rss_groups"></div>
