From Dow Jones: The bonds issued by Fannie Mae (FNMA) and Freddie Mac (FMCC) pose a low default risk, since the U.S. government can't allow them to default without impacting its sovereign credit, Wang Jianxi, executive vice president of sovereign-wealth fund China Investment Corp., was quoted as saying in the latest edition of Caijing magazine.
CIC and China's State Administration of Foreign Exchange as well as some other Chinese commercial banks are the largest overseas investors of bonds issued by U.S government-backed Fannie Mae and Freddie Mac, the report said...........................................Full Article: Source
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