Agency mortgage-backed securities ($7.5 trillion outstanding) are treated as very safe and liquid assets for bank capital purposes because Fannie Mae and Freddie Mac provide an explicit guarantee of prompt payment of principal and interest.

factualpending

Speaker

Jim Milstein

Evidence Quote

“agency MBS is treated as a very safe and liquid asset for bank capital purposes. Exactly. because Fanny and Freddy are there to guarantee the prompt payment of principal and interest.”

Source

Jim Millstein on the Massive Risks of Any 'Mar-a-Lago Accord' | Odd Lots— Bloomberg Podcasts
Created: 8/11/2026, 7:46:27 AM

My Notes

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