- Jan 13, 2002
- Professional Status
- Retired Appraiser
Read the article. Don't you think that the heading of your post is a bit misleading given that the article essentially is saying that there is no bubble?
(September 18) -- Fannie Mae reports that its so-called "duration gap," which gauges its interest-rate risk, ballooned from negative nine months in July to negative 14 months in August--the highest level on record.
The result is a potential mismatch between the mortgages it now owns and the debt on its books, which could send the government-sponsored enterprise into a financial tailspin in the event of a sudden shift in interest rates.