Plans for issuance of a new type of mortgage security from Fannie Mae and Freddie Mac, the so-called "risk sharing" bond ,  could become a casualty of the Oct. 12 changes to how the  U.S. Commodity Futures Trading Commission (CFTC) defines "commodity pools".

The "risk sharing" arrangement, first outlined by the FHFA in Oct. 2011, would allow GSEs to take losses only after the riskiest bonds in the capital structure (expected to be 5% to 10% in thickness) are first absorbed by private investors in GSE MBS issuances, according to an Oct.28, 2011, online  research report published by the Aite Group.  In addition, the first-loss bonds would give risk-seeking investors a chance to participate in MBSs that would otherwise be unavailable to them.  

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