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Working Paper
The GSE implicit subsidy and value of government ambiguity
The housing-related government-sponsored enterprises Fannie Mae and Freddie Mac (the "GSEs") have an ambiguous relationship with the federal government. Most purchasers of the GSEs' debt securities believe that this debt is implicitly backed by the U.S. government despite the lack of a legal basis for such a belief. In this paper, I estimate how much GSE shareholders gain from this ambiguous government relationship. I find that (1) the federal government's implicit subsidy of Fannie Mae and Freddie Mac has resulted in a funding advantage for the GSEs over private sector institutions, (2) ...
Journal Article
Taxpayer risk in mortgage policy
Conference Paper
Valuing conjectural government guarantees of FNMA liabilities
Journal Article
Fannie Mae's new standards
Conference Paper
Fannie Mae's benefits to home buyers: the business perspective