BlackRock seem to buy debt mortgage Agency of the United States more (Reuters)

SINGAPORE (Reuters)-BlackRock, Fund Manager in the world, is looking for opportunities to buy the debt of the United States mortgage agency in the wake of the Standard Poor's downgrading of sovereign & rating U.S., said Rick Rieder, company chief investment officer for fixed income portfolios.

Financial markets in Asia slumped Monday after the unprecedented decision of S & P cut the U.S. debt rating to AA-Friday plus from AAA, a move that could lead to chain credit rating cuts mortgage finance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB).

Rieder, who oversees about $ 612.5 billion in assets as of June to BlackRock, is focused on the quality of the so-called debt GSE among other credits.

"The GSEs are still an instrument of high quality, and in the context of improving the liquidity of our portfolio, we have been a buyer of mortgage Agency," Rieder told Reuters by phone.

"With greater volatility of Agency mortgage market may experience some weakness, and if there's a weakness I will add to the portfolio once again," he added.

For Fannie Mae and Freddie Mac, losing their AAA rating may raise borrowing costs, making it potentially mortgages more expensive for consumers and the added stress in the United States already unstable property market.

For the past few months by the bond-buying 600 billion of the Federal Reserve, BlackRock is protecting wound his credit portfolios against risks arising from the debt crisis of the euro area and the impasse over the U.S. debt ceiling by increasing exposure to high-quality bonds.

Rieder said the action S & P was well-flagged so it will require little or no changes to their portfolios.

He did not expect that the role of the United States Treasury collateral repo market has changed after the S & P downgrade.

"The Treasury market is a market of 13 billion dollars and a lot of reason that is used as a form of guarantee is not only the rating AAA or what was a AAA rating but the incredible liquidity and because it has become accepted as a form of payment and guarantee. A one-notch downgrade by one of the three agencies will not change that dynamic in any significant form. "

With regard to economic prospects, Rieder believes the u.s. economy will grow under the trend for a long time, and the Federal Reserve does not necessarily add more liquidity through a new program of quantitative easing. Rather it can keep the size of its budget for a longer period and extend the duration of some of its fixed-income assets, he said.

"A recession is unlikely, but we cannot exclude."

(Edited by Kim Coghill)

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