Fanni Mae (FNM) and Freddie Mac (FRE) exposure to subprime

--Freddie Mac, 124 bil of bonds backed by subprime mortgages, 17% of protfolio --Fanni Mae, 58 bil, 8% (Check out Mortgage Portfolio Composition in 10k) --vast bulk of the loans they own or guarentee are convervative fixed-rate prime mortgagtes. --turmol has helped them regain market share --paper losses wont's necessarily be realized as they are not forced to sell --they own a combined $1.4 trillion of mortgage and related securites, and guarantee paymens on more tha n$3 trillion of loans --Fanni Mae MBS approximately represent 23% of total U.S residential mortgae debt outstanding