Freddie Gets Asia, Europe Buyers for $3 Billion Bonds

Bloomberg (07/18/08); Shenn, Jody
Asian and European investors snapped up a $3 billion sale of Freddie Mac bonds at near-record yields, further proof that foreign central banks continue to support the troubled government-sponsored enterprise (GSE). Asian investors bought at least 34 percent of the Freddie Mac debt sold on July 17, while European buyers purchased 27 percent. In the last month, Freddie Mac has plunged 64 percent in New York Stock Exchange trading on worries that it may not have sufficient capital to ride out the current housing slump. The GSE relies on foreign institutions to finance its business.