Losing Confidence

From an article in Asian Investor:

"The Insurance Bureau at the Financial Supervisory Commission in Taipei announced revised rules on how insurance companies can treat investments in mortgage-backed securities (MBS). The FSC says in improving the monitoring and control of risk management in the industry, it will revise previous gaps left under Article nine of its offshore investment regulations."


"Where previously there was no limit to investments in MBS issued by US federal housing loan agencies, namely Fannie Mae, Freddie Mac and Ginnie Mae, insurers will now be given a maximum ceiling of 50% of their offshore investment limit to such products by the three institutions. Maximum exposure to MBS and collateralized issues by any of the individual agencies will be set at 25%."


Further fuel to the fire if more countries follow and limit their exposure to US government backed securities, in this case, specifically mortgage-backed securities.