Will Fannie Mae and Freddie Mac's bonds lock in China's creditors? Many experts said that the delisting of Fannie Mae and Freddie Mac has no direct impact on the bonds held by China, but whether there will be a default in the future depends on the reform policy of the US government towards Fannie Mae and Freddie Mac.
"The delisting of Fannie Mae and Freddie Mac is only the delisting of their shares from the exchange, which has no direct impact on the bonds of Fannie Mae and Freddie Mac." Chen Daofu, director of the Comprehensive Research Office of the Financial Research Institute of the State Council Development Research Center, said that Yin Jianfeng, director of the Structural Finance Research Office of China Academy of Social Sciences, said that the delisting of Fannie Mae and Freddie Mac had nothing to do with their bond solvency, nor did it affect the credit rating of the bonds they issued. "So far, its credit rating is still AAA," Yin Jianfeng said.
"You can cash out at any time, and you will definitely make money on your books, because the price of Fannie and Freddie bonds is hitting a record high." An industry insider analyzed.
Whether Fannie Mae and Freddie Mac bonds will default in the future is still unknown. Analysts pointed out that the US government did not explicitly guarantee Fannie Mae and Freddie Mac, but the market always thought that the government had an implicit guarantee for them.
There is no risk in holding Fannie Mae and Freddie Mac bonds in the short term, but how to prevent risks and ensure the stable operation of China's foreign exchange reserves is an unavoidable problem for foreign reserve managers and financial institutions.
Song Hongbing, chairman of the Institute of Global Finance and Economics, said that even if they want to sell Fannie Mae and Freddie Mac bonds, it is difficult to find enough "big buyers" or sell them at better prices. Therefore, in view of the current high market price of Fannie and Freddie bonds, relevant institutions or departments can take other investment measures to revitalize Fannie and Freddie bond assets, thus "turning waste into treasure".
(Source: china securities journal)