Fannie, Freddie bondholders give thumbs-up to debt

Marketwatch reports:

Holders of debt issued by Fannie Mae and Freddie Mac haven't broken a sweat over the mortgage agencies' financial situation, taking the mounting worries about their loan losses as a good excuse to snap up their bonds.
While the shares of the government-sponsored entities have plunged in the last week, the price of their debt actually has risen.
That's because bondholders are increasingly comfortable that the mortgage giants will have enough capital to pay their debt -- even if their earnings growth stalls.