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Commentary: The Inevitable Bursting of the Muni Market Bubble

APR 11, 2013 1:32pm ET

In the next few years, the Treasury plans to completely "wind down" Fannie Mae and Freddie Mac, and the impact on the pre-refunded and escrowed-to-maturity municipal securities will be devastating.

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Comments (1)
If some of the Fannie and Freddie securities that were used to pre-refund do lose value as a result of privatization, does the issuer have to put up additional collateral, or do the bond holders take the loss? How do you expect that issuers will respond differently based on size and strength?
Posted by hrichelson | Monday, April 15 2013 at 3:24PM ET
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