New Delhi, Jan. 9 -- Investors reassess risk as political signals raise doubts about the future of Fannie Mae and Freddie Mac.

The renewed debate over the future of Fannie Mae and Freddie Mac has once again injected political risk into the heart of the US housing finance system, unsettling mortgage bonds investors and reviving long-standing questions about government backing, market stability, and taxpayer exposure.

Recent signals from former President Donald Trump suggesting a fresh attempt to overhaul, or potentially privatize, Fannie Mae and Freddie Mac sent ripples through the $9 trillion US mortgage market. Prices of bonds tied to the housing giants moved sharply as investors reassessed assumptions that have underpinned American ho...