Freddie VP Foresees MBS Dislocations

A Freddie Mac portfolio manager told conference attendees Wednesday that he believes interest rate or credit-related market dislocations may lie ahead in the mortgage-backed securities sector and said the company will be able to help support dislocated markets if their liquidity dries up."We view ourselves as providing liquidity to the Street," Byron L. Boston, vice president of mortgage portfolio management, told attendees at the American Securitization Forum's first annual meeting in New York. He noted that in the past the government-sponsored enterprises have stayed in the market to support it when others have not. He also said Freddie Mac has concerns about the subprime sector but invests in it despite these concerns because that investment allows the GSE to help serve areas that would otherwise be underserved. The American Securitization Forum can be found on the Web at http://www.americansecuritization.com.