Fannie, Freddie Risk-Transfer Bonds Give Investors New Scare

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  • Prices tracking slump in risky assets on China concerns
  • Market unsettled despite `pristine performance' of mortgages

A nascent corner of the market for Fannie Mae and Freddie Mac bonds is on a roller coaster ride despite what Morgan Stanley calls the “pristine performance” of the mortgages linked to the debt.

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