WASHINGTON — Market participants are exploring a variety of possible federal guarantees or direct loans for taxable military housing debt that would boost the liquidity of existing paper that is wrapped by troubled or downgraded insurers and make new deals feasible.

The calls for some kind of federal assistance dominated the discussion at The Bond Buyer’s annual military housing privatization conference here this week. They come as liquidity has dried up for much of the roughly $21 billion in outstanding military housing debt because it is wrapped by downgraded bond insurers, largely MBIA Insurance Corp., now National Public Finance Guarantee Corp., or Ambac Assurance Corp. But some type of federal guarantee on the debt — possibly from mortgage giants Fannie Mae or Freddie Mac, two government-sponsored enterprises, or GSEs, that are effectively controlled now by the Treasury Department — could draw more investors into the market and pave the way to the issuance of new bonds that would finance additional phases of existing projects, conference participants contended.

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