Why are we not surprised that a new study from the Federal Reserve Bank of New York favors capital-markets risk shares over front-end ones?  We have frequently noted that this view has long characterized Treasury thinking and will have significant impact not only on Hill discussions of a new GSE model, but also and more immediately on pending Ginnie risk shares and those the GSEs will structure as they fight for a future ahead of Treasury action in the event that legislation comes to naught.  A friend at the Fed will come in darn handy.

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