Central bankers and economists from around the globe will once again flock to the Federal Reserve's annual gathering in Wyoming this week, and once again will meet against the backdrop of volatile markets and the prospect of further Fed support for a struggling U.S. economy.
Housing bonds that are backed by Fannie Mae, Freddie Mac, or Ginnie Mae will all be adjusted.
In the municipal market, the downgrade will likely affect credits directly supported by federal aid and credits that rely on federal support streams for part of total revenues.
Mortgage rates have fallen to a nine-month low, sending refinancing applications on the rise.
The Obama administration is looking for new ideas to shrink a glut of foreclosed properties held by mortgage finance giants Fannie Mae and Freddie Mac that are weighing down the housing market and hurting home prices.
It took S&P until Monday to downgrade Fannie Mae ? years after the troubled federal housing agency doled out thousands of loans to deadbeats who never had the ability to repay them.
Mortgage finance giant Freddie Mac FMCC.OB said on Monday it would ask for an additional $1.5 billion from taxpayers due to losses stemming from the weak housing market.
Mortgage giant Freddie Mac is seeking a $1.5 billion dollar bailout after announcing a $4.59 billion dollar loss in the most recent quarter.
The Dow Jones Industrial Average was rocked by investor fear on Monday, dropping 634 points during trading.
Gold notched a new high on Monday as investors ran to the precious metal for safety amid collapsing stock markets.
Call it downgradeageddon, the fear sending U.S. markets sharply lower.
The Dow lost four percent in trading mid-day Monday, while the Nasdaq and S&P lost five percent. President Barack Obama addressed downgrade Monday, but the markets dropped further after his comments.
The stock market today show sharp drops, following a downgrade by S&P from a stellar AAA to AA+, including all sectors in the S&P 500. On the other hand, investors are rushing into buying bonds rather than stock.
The U.S. downgrade drama heated up Monday, as stock markets domestically and abroad plunged. The end of the story hasn't been told, yet. But how it ends lies in the hand of the leading character -- U.S. President Barack Obama.
Shares of major gold mining companies notched fresh gains in midday trading Monday as the price of the precious metal topped $1,700 per ounce.
The United States is unlikely to get its AAA rating back any time soon, and if Washington fails to follow through on spending cuts, the nation faces an even further downgrade, two Standard & Poor's execs said Monday.
These institutions process trades and are key to the daily operation of the U.S. financial markets.
Standard & Poor's downgrading in the U.S. continued Monday, as the ratings agency lowered Fannie Mae and Freddie Mac, which own or guarantee roughly half of all mortgages in America.
It looks like the U.S. Government isn't the only one taking a ratings hit. Standard & Poor's cut Freddie Mac's and Fannie Mae's long-term ratings one notch on Monday.
On Friday, S&P reduced the U.S. credit rating by one notch from the highest rating of AAA to AA+, with a negative outlook.
A downgrade of United States' top-tier credit rating has Wall Street scrambling to figure out the knock-on effects for the financial system, from mortgages to banks to markets that rely on U.S. Treasuries for collateral.
BlackRock, the world's largest money manager, is looking for opportunities to buy U.S. mortgage agency debt in the wake of Standard & Poor's downgrade of the U.S. sovereign rating, said Rick Rieder, the firm's chief investment officer of fixed income, fundamental portfolios.
