Between 2000 and 2007, the quality of the mortgages in Fannie and Freddie’s portfolios became riskier and riskier. And yet F and F were able to continue to borrow at rates very close to those of Treasuries. In fact, the spread narrowed over time.
I am looking for a nice chart (or better yet the data itself) that illustrates this. There is this Bloomberg series but it is hard to paste into a document that looks consistent with the other charts I am using. it also is of a limited time frame. Does anyone out there have a cleaner version and an explanation of what the chart is actually measuring?
