Markets weather storm over Freddie Mac accounting mess

A clear-out of senior management following the disclosure of accounting irregularities at US mortgage agency Freddie Mac seems to have restored investor confidence in the government-sponsored institution

Credit markets have remained largely unfazed by the recent furore over accounting irregularities at the US government-sponsored mortgage agency Freddie Mac, one of the world’s largest bond issuers.

Freddie Mac’s announcement of abrupt changes in its senior management has helped allay the unease that surrounded the agency in January, when it announced that it was reviewing its earnings for the past three years. Any damage caused by the announcement, say analysts, has been done to the