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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (4646)	1/9/2004 11:39:40 AM
From: mishedlo	Respond to of 110194

FNM biz.yahoo.com Holy Sh*t Batman Look at this Although both companies have a healthy amount of reserves, the dramatic shift in Fannie's risk-based capital requirements indicates a higher degree of volatility in its portfolio, especially under the current low-interest rate environment. As has been evidenced in several previous capital test results, the third- quarter numbers again show that Fannie Mae's portfolio is better positioned for higher interest rate periods and is, therefore, more vulnerable to a protracted period of low interest rates. In fact, Fannie's portfolio, when tested against a high-interest rate environment, produces a risk-based capital requirement of zero. ====================================================================== When is this POS gonna blow up? M