Fannie Mae''s record $7 billion note sale drew robust demand, primarily from domestic investors, three days after the government took control of the largest US mortgage finance company. Orders for the massive issue surpassed the amount sold, and the risk premium was cut in secondary trading confirming a solid investor response, market sources said on Wednesday.
Investment from Asia and central banks may have been shaken by uncertainty over what lies ahead following the take-over of Fannie and its smaller rival Freddie Mac, which could prove to be the biggest financial bailout in US history.
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