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Crikey! Market taking a chunk out of Fannie Mae, Freddie Mac shares

Posted on Monday, July 7th, 2008 | In Current Market News, Economics
Contributed by: Mike Larson (http://blogs.moneyandmarkets.com/blog/interest-rate-roundup) -

As the late, great “Crocodile Hunter” Steve Irwin might have said, “Crikey!” The market is taking a huge chunk out of Fannie Mae’s and Freddie Mac’s hides today amid ongoing fears about mortgage losses and potential, additional capital raisings. Shares of Fannie Mae were recently off 18%, while shares of Freddie Mac were down 21%. The spreads between yields on Fannie and Freddie MBS and Treasuries are widening out again. And credit default swaps on Fannie and Freddie debt are getting somewhat more costly. Good thing the credit crisis has been contained or I might be worried.

Last 5 posts by Mike Larson

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Current Market News, Economics




About Mike Larson (http://blogs.moneyandmarkets.com/blog/interest-rate-roundup)

Mike Larson joined the company in 2001, and has more than 10 years of experience researching and writing about personal finance, investing, and the housing and mortgage industry. In 2003, Mr. Larson was named associate editor of the company’s monthly Safe Money Report. In this role, he is responsible for writing and editing as well as analyzing trading opportunities for clients. Mr. Larson is also a regular contributor to the company’s daily e-letter, Money and Markets and editor of three of its premium trading services.

Before joining Weiss Research, Mr. Larson was a personal finance reporter for Bankrate.com, where he wrote extensively on mortgage lending, banking, residential real estate, and Federal Reserve Board policy. His responsibilities included analyzing economic data and interest rate trends for a weekly column and developing rate forecasts for a regular index feature. Previously, Mr. Larson held positions at Bloomberg News and the Boston Herald.

Recognized as an interest rate and mortgage market expert, Mr. Larson’s views have been quoted in numerous publications nationwide, including the Washington Post, Chicago Tribune, Dow Jones Newswires, Associated Press, Reuters, CNNMoney.com, Sun-Sentinel, Tampa Tribune and the Palm Beach Post. His in-depth analysis of the housing and mortgage market and accurate forecast of the subprime crisis has lead to frequent appearances on CNBC, CNN, Fox Business News, and Bloomberg Television, as well as many nationally syndicated radio shows. Mr. Larson’s understanding of the U.S. real estate market has also been recognized overseas, having recently been featured in a documentary on the subject produced by a Barcelona-based television station. In addition, his writing has been acknowledged by both the National Association of Real Estate Editors and the Massachusetts Press Association.

Among the first analysts to call the housing slide, Mr. Larson’s policy paper, “How Federal Regulators, Lenders and Wall Street Created America’s Housing Crisis: Nine Proposals for a Long-Term Recovery,” received broad media coverage following its July 2007 submission to the Federal Reserve and FDIC. In the paper, Mr. Larson accurately predicted the long-term impact of the deepening subprime mortgage crisis on the broader economy that the nation faces today.

Mr. Larson holds B.A. and B.S. degrees from Boston University.

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