Bloomberg (08/27/08); Shenn, Jody
Citigroup Inc. reports a yield of approximately 40 basis points on current-coupon mortgage bonds bought by Fannie Mae and Freddie Mac, surpassing the amount they pay to borrow by unloading benchmark bonds. Net interest income recorded by Fannie Mae surged to $2.1 billion in the second quarter from $1.7 billion in the first quarter, according to Credit Suisse Group, with investment profits rising to 100 basis points from 82 basis points. Meanwhile, Freddie Mac posted a 92-percent jump in net interest income to $1.5 billion, with investment profits increasing to 80 basis points from 48 basis points. According to Loomis Sayles & Co. Vice Chairman Dan Fuss, "They, at the increment, are very, very profitable. If they can continue to do anything close to business as usual, they are immensely profitable."
Thursday, August 28, 2008
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