Last Wednesday's Wall Street Journal editorial, entitled "Fannie Mae Enron?" - which claimed that Fannie Mae and Freddie Mac's risk management techniques, like those of Enron, appear to be "rather frisky" - had no great impact on MBS flows, sources said, and was more of an issue for the Agency market, where spreads widened the morning the piece was published.

Despite the MBS market's dismissal of the article - one MBS analyst called it "histrionic" while another said it may just be a one-day issue - other sources lamented that both agencies have intimidated the Street and that there were actually valid points raised by the article's author.

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