Will the GSEs Repeat 2007 - 2009’s Large Losses?
The Stoop (NYU Furman Center)
NOVEMBER 7, 2022
9] Such PLS bond investments fell into an accounting category where the capital of the GSEs had to reflect the market value declines of the bonds, which were quite severe, rather than the smaller but still significant actual losses that appeared over future years. [10] percent per year, less than half the rate of house price inflation. [5]
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