56 minutes ago NEW YORK (Reuters) - Freddie Mac's (FRE.N) latest debt sale drew anemic demand on Monday, a day after Barron's reported an increasing likelihood the U.S. Treasury may essentially take over Freddie and rival Fannie Mae (FNM.N).The weekly financial newspaper said such a move could wipe out existing holders of the largest U.S. home funding companies' common stock, with preferred shareholders and even holders of the two government-sponsored entities' $19 billion of subordinated debt also suffering losses.
Bonds issued by the two 'agencies' sharply underperformed Treasuries, and their shares slid by more than 9 percent on the New York Stock Exchange.
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