While the travails of Fannae Mae and Freddie Mac have the Treasury and much of Wall Street in a twist, money fund managers tell Bloomberg that they are sticking with the two giants.

The financial news spoke with money fund managers from Vanguard Group, Federated Investors and The Reserve to see how they are treating Fannie Mae and Freddie Mac debt.

Paulson's actions are close to an explicit backing of the companies' debt, said

Vanguard portfolio manager David Glocke told Bloomberg that Treasury Secretary Henry Paulson's move have stilled the market's roiled waters. "We've been a big buyer and have positions in all our portfolios," he added.

Patrick Ledford, chief investment officer of The Reserve, said that the New York money manager is "... we're very comfortable with Freddie and Fannie exposure."

Meanwhile, Deborah Cunningham, chief investment officer of taxable money funds at Federated Investors said that she expects the spreads for Freddie and Fannie debt to narrow and that the Pittsburgh-based fund firm continues to hold their debt.

"We are substantially invested in both and that continues to be the case," she told Bloomberg. 

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