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Fannie and Freddie CDS Spreads Even Wider

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The free fall of Fannie and Freddie shares slowed a bit today but the pricing on the credit default swaps continued to blow-out today. The spread on insuring Fannie Mae's debt widened about 40 points today, to around 355 basis points, according to a bond trader we trust. Freddie saw similar widening. That's around the same size as yesterday's CDS moves, which are widely believed to have contributed to yesterday's sell-off.