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 MilsteinEvidence 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.”
Created: 8/11/2026, 7:46:27 AM
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