Fannie Mae, Freddie Mac help Tokyo shares
Jul 11, 2008 | Comments 0
Asian shares especially in Tokyo have rallied following the news that the U.S. Government have stepped in to bail out banks, Fannie Mae, Freddie Mac. It is also suggested that ten-year yields may rise because of the efforts to helps those companies.
MSCI Asia Pacific Index of regional shares had rose to 0.3 percent, as a result erased those earlier losses which curbed the demand for debt. Freddie Mac shares fell by 22 percent to just $8, Fannie Mae dropped 14 percent to just $13.20 per share.
A recent newspaper report has said that banks shares are dropping while their borrowing cost continues to increase. Investors speculate that losses could be in the region of $11 billion over the past few months, this will just keep increasing.
Fund Manager at Daiwa SB Investments, Tokyo, Kei Katayama “I’m betting on the weak economy.” She also added “There’s going to be weaker consumption and much weaker growth.”
Read the full report from Bloomberg
Filed Under: Mortgage News