Fannie, Freddie Boost Risk to Levels That Once Shook Wall Street

Fannie Mae and Freddie Mac are increasing interest-rate risk within their expanding investment portfolios, reaching exposure levels that previously rattled Wall Street. Furthermore, the integration of crypto assets into mortgage collateral by these entities could destabilize the housing market amid rate volatility. These developments have driven a key gauge of their exposure to alarming levels, mirroring the financial instability seen two decades ago while introducing new risks through the adoption of digital assets in collateral.