There are questions about how the government-sponsored enterprises’ risk sharing bonds may be treated under Basel III international accounting standards that could affect bank investors’ appetite for them, according to Fitch Ratings.

Based on Freddie Mac’s recent inaugural issue of structured agency credit risk bonds, Fitch notes, “While the STACR bonds were issued as unsecured obligations of Freddie Mac, their principal repayment is based on the performance of a reference pool of mortgages guaranteed by Freddie Mac.

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