People once thought guaranteeing conventional, thoroughly underwritten mortgages with near Treasury-level funding costs was a lucrative, low-risk business. Freddie Mac's forthcoming second-quarter results could provide a reminder why.

When the government conservatee, a bastion of the mortgage market, releases the results — probably on Monday — it is expected to report hefty losses on derivatives and continued credit troubles, just as it has the last several quarters. However, Freddie will also probably show revenue growth, amid other inklings that the worst of the credit crisis is behind the government-sponsored enterprises.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.