Last weekend the US government announced a takeover of the two large mortgage financers. The expected move will inject much needed capital into the troubled institutions, diluting shareholdersÆ equity but offering bondholders the explicit backing of the American government.
A sovereign bond analyst says China, which is a large holder of US bonds, would be relieved now that the uncertainty hanging over these agencies has been removed. The mainland holds US agency debt worth $376 billion, way ahead of second-placed Japan, which holds $223 billion...
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