Fannie, Freddie Debt Valued as Low as 91.5 Percent

Washington Post (10/07/08) P. D4
The largest technical default in history will force credit-default-swap investors that sold protection on bonds backed by Fannie Mae and Freddie Mac debt to shell out upwards of 8.5 cents on the dollar for contract settlements. CreditFixings.com says Fannie Mae senior unsecured notes were valued at 91.5 percent of face value and subordinated debt at 99.9 percent of face value by J.P. Morgan Chase, Deutsche Bank and 11 other credit-swap dealers that auctioned the notes. Freddie Mac senior and subordinated notes were valued at 94 cents on the dollar and 98 cents, respectively.