First Union Corp. sees significant benefits in teaming with Freddie Mac to securitize home equity loans.

Executives at the banking company - and Wall Street researchers - reason that with Freddie Mac's guarantee on subprime securities, investors won't demand as high a return, because the products will be seen as less risky.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.