Swiss Re has $9.6 bln exposure to Freddie, Fannie

ZURICH (Reuters) - Swiss Re said it had $9.6 billion exposure to the debt of U.S. mortgage financers Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) and Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz), renewing fears over its vulnerability to the credit crunch and sending its shares down.

I highlighted the last statement. Think of it as a measure of fear and loathing in financial markets. Now exposure to Fannie and Freddie's debt is considered a BAD THING! Their debt used to be second only to Treasury bonds in terms of credit risks.