European issuers with the best credit ratings are set to benefit from the uncertainty surrounding Fannie Mae and Freddie Mac, the triple-A rated US mortgage refinancing agencies, according to bankers.

Bonds issued by Freddie Mac and Fannie Mae have underperformed the rest of the sovereign, supranational and agency (SSA) sector in the past week. Debt investors have become nervous about accounting problems in the US agency sector and political pressure to change the way the agencies are regulated.