My husband watches shemale porn quite regularly and even visits sites to check for local shemales. When i talked to him about it he gets embarrassed and angry. he 'claims' he doesnt want to have sex with shemales but why watch it then? im freaking out!

Angry and embarrassed = freaking out for guys. He's trying to learn how to handle a fetish, and that sometimes fantasies don't have to extend to reality. I'd recommend having a talk about it when he's not looking up trannies.

Either that or he's cheating on you with trannies, one of the two.