This is funny

- Asian investors won’t buy debt and mortgage-backed securities from Fannie Mae and Freddie Mac until they carry explicit U.S. guarantees, similar to those given on bonds issued by Bank of America Corp. or Citigroup Inc.

From Bloomberg.

They have them, They are called Treasuries. "we want treasuries from Fannie and freddy, with 5% yield"... Nope, you get T-Bills, at 1-2%, and we will arbitrage them at 5%. Because that Guarantee is worth 400 basis points.

I mean, I'm concerned about the moral hazard. Risk Equals reward.