Fannie, Freddie Placing Large Bids for Mortgage-Backed Bonds

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000US Stocks:Homes in Palm Beach Gardens, Florida.Fannie Mae and Freddie Mac have begun placing sizable orders to purchase mortgage-backed securities, stepping into a market roiled by widening bond spreads and a surge in volatility, according to a person with direct knowledge of the matter.The government-controlled entities are moving to capitalize on a sharp selloff while expanding their already significant portfolios of bonds and loans, said the person, who asked not to be identified discussing confidential information. Their efforts follow a directive two months ago from President Donald Trump instructing the companies to acquire $200 billion of MBS as part of a push to drive down mortgage rates and bolster housing affordability.