MORTGAGES/AGENCIES-Risk premiums leap, 'just no buyers'

NEW YORK, Nov 20 (Reuters) - Risk premiums on many notes and bonds sold by Fannie Mae and Freddie Mac leaped near or to all-time highs early Wednesday as dealers cleared balance sheets, sought safety in Treasuries and battled a dearth of investor interest.

"It's general turmoil in financial markets and the deleveraging going into the year end," said Art Frank, director and head of agency mortgage-backed securities research at Deutsche Bank. "There are just no buyers."

Current coupon agency MBS reached a new wide versus swaps, he said, trading 227 basis points over 7-year swaps compared with the prior record of 212 basis points set on Tuesday. The prior peak was seen on March 6, at a 190 basis-point spread, Frank said. (Reporting by Lynn Adler; Editing by Theodore d'Afflisio)