PART OF THE story of the recovery of the US economy from
the shock of September 11 involves agencies and supranationals. Not
least, they were the first to the bond market after the attacks -
Freddie Mac being first with a two-year auction on September 15.
Louise Herrle, Freddie Mac treasurer, says: "We felt it was
important to go ahead, to demonstrate we were working with the
dealers to keep the market open. It was an internet auction, so
there were also all the issues of whose technology was still up.
What was incredible was that all the dealers participated, even the
ones in contingency sites."
The deal sent out an important signal - the bond markets and the
investment banking community were open for business. Herrle says:
"I would say agencies and supranationals played an important role.
It was a time of personal anguish. It was very difficult but it was
important that...
