Are Fannie Mae and Freddie Mac Bonds Safe?
Are Fannie Mae and Freddie Mac Bonds Safe? Friday July 18, 2008#spacer{clear:left}#abc #sidebar{margin-top:1.5em}zSB(3,3)As the quasi-governmental agencies that dominate the mortgage market near collapse, bond holders are wondering if the bonds issued by Fannie Mae and Freddie Mac are safe. Now it’s easy for me to be calm about this. I don’t own any debt from either agency. So you may want to take that into consideration when you hear my thoughts. But with that disclaimer in mind, here’s what I think: Yes. The bonds are safe. I wouldn’t buy one today, but if you already own one, you’re safe. It’s likely you’ll get your interest payments and the return of your principal if you hold the bond until maturity. Certainly I’m not the only person to feel this way. Investment guru Porter Stansberry, writing today for the Seeking Alpha blog, says although there is “simply no doubt Fannie Mae’s and Freddie Mac’s
