Fannie Mae and Freddie Mac have begun placing sizable orders to purchase mortgage-backed securities, stepping into a market roiled by widening bond spreads amid a surge in volatility, according to a person with direct knowledge of the matter.
The government-controlled entities are moving to capitalize on a sharp selloff while expanding their already significant portfolios of bonds and loans, said the person, who asked not to be identified discussing confidential information. Their efforts follow a directive two months ago from President Donald Trump instructing the pair to acquire $200 billion of MBS as part of a push to bolster housing affordability.
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