They want hard assets!
Russia dumped $50 billion of mortgage bonds and now owns just $50 billion worth. Two weeks ago, they said this:
MOSCOW, Jul 14, 2008 (Dow Jones Commodities News via Comtex) -- The Russian Finance Ministry reiterated Monday that it doesn't see a threat in holding parts of its gold and foreign-exchange reserves in debt of U.S. mortgage companies, including Fannie Mae (FNM) and Freddie Mac (FRE).
"We don't see a reason to change anything because the rating of the debt of those agencies hasn't changed," Deputy Finance Minister Dmitry Pankin told journalists, adding that the debt obligations are backed by the U.S. government.
Russia learned from Wall Street. Tout them, while you dump them. Now you know where PIMCO got their inventory from!