(Source: Reuters By Kevin Plumberg) – BlackRock, the world’s largest money manager, is looking for opportunities to buy U.S. mortgage agency debt in the wake of Standard & Poor’s downgrade of the U.S. sovereign rating, said Rick Rieder, the firm’s chief investment officer of fixed income, fundamental portfolios.Financial markets in Asia slumped on Monday after S&P’s unprecedented decision to cut the U.S. debt rating on Friday to AA-plus from AAA, a move that could lead to knock-on credit rating cuts of mortgage finance companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB).

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

Source: Reuters By Kevin Plumberg

Mon Aug 8, 2011 12:30am EDT

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