[OPE] Crisis development

From: A.VB (valle@servidor.unam.mx)
Date: Wed Aug 20 2008 - 10:56:37 EDT

Mae and Freddie
Mac's success
in repaying $223 billion of bonds due by the end of the quarter
may determine whether they can avoid a federal bailout.

Rolling over the debt ``is the single most important factor to their ability to remain liquid,'' said Moshe Orenbuch, an analyst at Credit Suisse in New York. ``So far, they've been able to do that.''

Investors in Asia, the biggest foreign owner of Fannie's $3 trillion of bonds, are reducing their share of purchases, potentially increasing the need for Paulson to make good on his pledge to backstop the companies.

Fragments of: Fannie, Freddie Bailouts May Hinge on Debt Rollover, Bloomberg

Alejandro Valle Baeza

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