Freddie Mac and Fannie Mae drew solid demand for $5 billion new securities

Freddie Mac and Fannie Mae saw unyielding demand for $5 billion of new securities on Wednesday, even when large overseas investors slashed their exposure to both troubled finance companies.

The key to running their business and supporting the housing market was highlight through their latest sales that continued access to debt funding. Freddie Mac sold $3 billion of two-year notes to yield 0.975 percentage point more than Treasuries, up from 0.88 point at its July sale of the same maturity.

Overseas investment had fallen off in recent months, after Freddie Mac and Fannie Mae announced $13 billion in losses, so Investors were feeling better about the demand rising slightly in Asia.

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