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A Bull Market for Agency Debt 

Jul 28, 2008By

The so-called “explicit implicit” backing of the debt of twin mortgage finance giants Fannie Mae [stock FNM][/stock] and Freddie Mac [stock FRE][/stock] has established at least one bull market in battered financials, even if equity investors continue to fret about their position in the food chain. Fixed-income investment shops are piling into the agency debt market in droves, as both the senior debt and mortgage-backed securities issued by the GSEs begin to look like a sure thing.

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