The Federal Reserve secretly selected a handful of banks to bid for debt securities acquired by taxpayers in the U.S. bailout of American International Group Inc., and the rest of Wall Street is wondering what happened to the transparency the central bank said it was committed to upholding.
Yields on Fannie Mae and Freddie Mac mortgage securities that guide home-loan rates dropped to the lowest in almost six months, as the response of European authorities to the sovereign-debt crisis helped drive investors to the relative safety of U.S. government-related debt.
U.S. mortgage bonds that lack government backing are trading at about the lowest prices in more than a year, even as riskier assets from high-yield company bonds to stocks rally, with investors bracing for sales of home- loan debt by European banks.
Deborah A. Cunningham , the manager of $261 billion at Federated Investors Inc. , was squeezed into the bathroom of her family’s recreational vehicle, trying to help save the $3.6 trillion money market industry.
Goldman Sachs Group Inc. is offering U.S. home-loan bonds without government backing to investors after acquiring about $6 billion in a single trade this month, according to three people familiar with the matter.