Freddie Mac is planning to sell $966 million of bonds tied to the risk of homeowner defaults after investors that bought in earlier sales reaped gains, according to a person with knowledge of the transaction.
Investors should avoid taking risk in all categories of U.S. securitized debt because American and European policy makers may damage financial markets as they respond to a slowing economy and government deficits, according to Bank of America Merrill Lynch analysts.
Credit Suisse Group AG is planning a collateralized loan obligation of about $500 million in the U.S. amid slower issuance as fund managers seek a clearer understanding of the requirements of the Volcker Rule.
The first annual losses in U.S. government-backed mortgage bonds since 1994 are deepening as the dual threats of a new regulator and a Federal Reserve pullback leave buyers navigating around what JPMorgan Chase & Co. calls a modern-day Scylla and Charybdis.
Demand for the Federal Reserve’s sales of mortgage debt assumed in the 2008 government bailout of American International Group Inc. may add to reasons the central bank won’t soon expand its balance sheet again, according to Bank of America Corp.
Investors in Blackstone Group LP’s debut sale of bonds backed by U.S. rental homes are agreeing to accept more risk than in traditional mortgage deals by at least two measures -- along with an unproven business.