|
|
Article: Freddie Mac Shores Up Capital but Still Faces Hurdles.
- Article from:
- Asset Securitization Report
- Article date:
- December 10, 2007
- Author:
CopyrightCOPYRIGHT 2007 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
While Freddie Mac's recent infusion of capital brought a wave of calm after its tumultuous third-quarter losses, analysts remain concerned about the overall financial health of the nation's second-largest buyer and guarantor of home loans.
The company recently sold $6 billion in preferred stock as a way to raise capital and win over investor confidence. The move came just over a week after the GSE announced that it was posting a $2 billion third-quarter loss, its largest quarterly drop ever. Approximately $1.2 billion in losses were tied to money the company set aside to cover bad home loans.
Not only did the size of the third-quarter deficit catch most ...