Fannie Mae was created by the United States government in 1938 with an explicit guarantee that buyers of the issued securities had the full faith and credit of the United States backing it. However, Fannie Mae became a private corporation in 1968, rendering the explicit guarantee as an implied...
However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing you full analytical transparency into your positions, our tools can tell you how much better you can do without increasing your risk or reducing expected return....
In order to realign incentives, we propose the creation of dynamic capital reserves that can be monitored, ideally loan-by-loan, by the banking regulators. The necessary reserves are lower when the bank assumes less leverage on a CDO or MBS purchase, resulting in an incentive for banks to ...