High-level investors are signalling growing fears about the fate of Fannie Mae and Freddie Mac as they employ complex “take under” trading strategies meant to profit from the turmoil at the two big mortgage financiers.
The “take under” positions are meant to take advantage of situations, such as that involving Bear Stearns, in which investors believe government regulators will allow financial companies to fail but then rescue holders of their debt to keep the financial system from collapsing.
