Freddie’s 1Q earnings were generally unsurprising – its mark-to-market losses are far from unique given recent interest-rate moves – but for the furor kicked up yesterday as market rumors circulated that the loss would be so great as to force a Treasury draw. Ducking the draw means averting a political backlash that, we think, could have been particularly problematic given the tenor of the current campaign.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.