2008-03-06bloomberg.com

The extra yield that investors demand to own agency mortgage-backed securities over 10-year U.S. Treasuries reached the highest since 1986, boosting the cost of loans for homebuyers considered the least likely to default... Spreads are also widening as ``hedge funds continue to de- lever,'' or scale back bond-secured borrowing, wrote Noah Estrin, a strategist at RBS Greenwich Capital in Greenwich, Connecticut, in a note to clients today.''



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