To maintain
maximum flexibility, the securities in which the Income Fund may invest include corporate debt securities of issuers in the U.S. and foreign countries, bank debt (including bank
loans and
participations), government and agency debt securities of the U.S. and foreign countries, convertible bonds and other convertible securities and equity securities, including preferred and common stock and interests in REITs.
This change, coupled with the statutory
maximum premiums charged for these
loans, will help protect FHA and further facilitate its efforts to encourage higher levels of private market
participation in the housing finance market.