Pursuits
Hedge Funds Drawn to Fannie-Freddie Risk-Sharing Plan
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Bond buyers are vying with insurers to strike deals with Fannie Mae and Freddie Mac as their regulator seeks to draw private capital to the government-dominated mortgage market.
The taxpayer-supported companies, which own or guarantee $5 trillion of residential debt, have held discussions with NMI Holdings Inc., a new mortgage insurer that raised $500 million in April, as they explore new ways of sharing risks. American International Group Inc. is also interested, while Angelo Gordon & Co. and Pine River Capital Management LP are among fixed-income investors that could jump on the opportunity.