(Bloomberg) Under provisions of the CARES Act, certain homeowners can put off mortgage payments for up to a year. Hedge funds and mutual funds are among bondholders that could lose $2 billion as a consequence of U.S. lawmakers’ letting millions of homeowners delay mortgage payments during the coronavirus pandemic.
At stake are so-called credit-risk-transfer securities whose owners include fixed-income funds run by Franklin Resources and AllianceBernstein.
Fannie-Freddie risk bonds threaten big losses for fund managers
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