1 Min Read
NEW YORK, Oct 6 (Reuters) - Sellers of protection on mortgage finance companies Fannie Mae FNM.N FNM.P and Freddie Mac FRE.N FRE.P will be repaid between 91.5 percent and 99.9 percent of protection they sold, based on the results of an auction on Monday to determine the value of the contracts.
Protection sellers on the companies' subordinated debt were the biggest winners, with contracts on Fannie Mae's subordinated debt recovering 99.9 percent of the sum insured, and swaps on Freddie Mac's subordinated debt recovering 98 percent, according to results published by auction administrators Creditex and Markit.
Credit default swaps on the senior debt, by contrast, will recover less, with Fannie Mae's senior swaps recovering 91.51 percent the sum insured and Freddie Mac's senior swaps recovering 94 percent. (Reporting by Karen Brettell;)