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


To: Wyätt Gwyön who wrote (54307)2/20/2006 1:37:17 PM
From: russwinter  Read Replies (1) | Respond to of 110194
 
are you suggesting that the GSEs will default? >

Even if you assume they don't, or that the implicit guarantee will stand, "investors" in agency bonds could see quite a credit spread and yield blow out, as delinquencies and foreclosures surge. Just don't feel such instruments are appropriate in these amounts for a central bank reserve holdings.