Another informative post from former Fannie Mae CFO Tim Howard -- https://howardonmortgagefinance.com/2016/12/12/a-welcome-reset/
Two in one day! Another great write-up from David Fiderer: http://www.fidererongses.com/params...-didnt-work-so-make-the-government-guarantee-
Excellent read: http://thehill.com/blogs/pundits-bl...-making-transparency-great-again-in-the-trump
Still a good buying opportunity. Plenty of up-side on most of the $50 Preferreds (~300%). Commons seeing some nice trading volatility.
Still a good buying opportunity. Plenty of up-side on most of the $50 Preferreds (~300%). Commons seeing some nice trading volatility.
Great article from former Fannie Mae CFO J. Tim Howard -- https://howardonmortgagefinance.com/2017/01/04/economics-trumping-politics/
The Clock is ticking with the Mnuchin confirmation on the horizon along with Mandamus rejection and Perry Appeal decision.
Still over 350% upside on FNMFN and FMCCT and the majority of the other $50 Preferreds.
The Clock is ticking with the Mnuchin confirmation on the horizon along with Mandamus rejection and Perry Appeal decision.
Still over 350% upside on FNMFN and FMCCT and the majority of the other $50 Preferreds.
BIG WIN!! Mandamus largely rejected, only 8 documents of the 56 approved by Sweeney are to be withheld under Executive Privilege. The other 48 documents must be turned over. Only 11,000 more documents to go through now and most are withheld under Privileges other than Executive, meaning they will be turned over in due time.
Preferreds should be up 20+% on this news. Watch for a delayed reaction and late-day rally. This is absolutely HUGE.
https://www.dropbox.com/s/2a6ishhxi9kuk0z/ct fed appeals writ mandamus.pdf?dl=0
Preferreds should be up 20+% on this news. Watch for a delayed reaction and late-day rally. This is absolutely HUGE.
https://www.dropbox.com/s/2a6ishhxi9kuk0z/ct fed appeals writ mandamus.pdf?dl=0
Mandamus ruling on previous page.
We are now winning on both fronts, Judicial and Political. Judicial was the easy one, but Political will make it an even better long-term picture.
ICYMI -- This came out last week: https://www.congress.gov/bill/115th-congress/house-bill/491/text
FYI -- Mnuchin's confirmation hearing is today also. Even more reason to continue to run.
We are now winning on both fronts, Judicial and Political. Judicial was the easy one, but Political will make it an even better long-term picture.
ICYMI -- This came out last week: https://www.congress.gov/bill/115th-congress/house-bill/491/text
FYI -- Mnuchin's confirmation hearing is today also. Even more reason to continue to run.
New Article from Gretchen Morgenson re: today's Mandamus ruling -- https://www.nytimes.com/2017/01/30/business/fannie-mae-freddie-mac-fairholme-appeal.html?_r=0
Excerpt:
“This is a sweeping victory for the plaintiffs and, more broadly, for the rule of law and transparency in our government,” Charles J. Cooper, chairman of Cooper & Kirk, which is representing Fairholme Funds, said in a statement. “It is clear from the Court of Appeals’ unanimous ruling that the vast bulk of the 11,000 documents withheld by the government will now have to be disclosed to the plaintiffs and the courts, and we are confident that these documents will further discredit the government’s defense narrative.”
Excerpt:
“This is a sweeping victory for the plaintiffs and, more broadly, for the rule of law and transparency in our government,” Charles J. Cooper, chairman of Cooper & Kirk, which is representing Fairholme Funds, said in a statement. “It is clear from the Court of Appeals’ unanimous ruling that the vast bulk of the 11,000 documents withheld by the government will now have to be disclosed to the plaintiffs and the courts, and we are confident that these documents will further discredit the government’s defense narrative.”
Mnuchin confirmation was delayed until today, but then Dems decided to no-show for the vote. I assume we still get a vote this week. Committee Leaders can push this through to the Senate floor if Dems continue delay tactics.
This is an awesome response to the otherwise garbage piece put out by the MBA (backed by TBTF Banks) earlier today -- https://www.scribd.com/document/338...mments-on-Mba-Gse-reform-principles-report-wb
This is an awesome response to the otherwise garbage piece put out by the MBA (backed by TBTF Banks) earlier today -- https://www.scribd.com/document/338...mments-on-Mba-Gse-reform-principles-report-wb
Good info in Fairholme's 2016 Annual Report ... Berkowitz is one of the main people backing litigation against the Government. He was also previously on the Board of Directors at Sear's with none other than Steven Mnuchin. Are you guys starting to see how this is all coming together?
http://www.fairholmefundsinc.com/Reports/Funds2016Annual.pdf
http://www.fairholmefundsinc.com/Reports/Funds2016Annual.pdf
ICYMI: "Hatch says the Senate Parliamentarian has OK'd the Committee' route suspend the rules and favorably report Mnuchin/Price" ... So Finance Committee has officially sent Mnuchin to the Senate floor for a confirmation vote. This will likely get wrapped up this week. Mnuchin confirmation equals another boom (as if that isn't already happening, LOL).
Hope you're enjoying the ride.
Hope you're enjoying the ride.
Fannie Mae has gotta be safer, they're going to be backing over a billion dollars worth of blackstone rental properties.
http://www.cnbc.com/2017/01/25/gove...e-giant-blackstones-rental-business-debt.html
If that works out then they probably expand those operations rather than the usual home owner subsidization business.
http://www.cnbc.com/2017/01/25/gove...e-giant-blackstones-rental-business-debt.html
If that works out then they probably expand those operations rather than the usual home owner subsidization business.
Freddie is actually in a better position from a financial perspective as they have paid the Treasury more on a percentage basis than they received as compared to Fannie. If they decide to use the "dividend" payments and count that as payment on principle on the original loan + 10% interest (personally I think it'll be lowered to 5%), then Freddie would be fully repaid or will likely be paid after they report Q4 2016 results and make one final payment.
There is a small possibility that Freddie could start paying Dividends on their Pref shares 1-2 quarters before Fannie, which would cause their Preferreds to hold a higher premium to Fannie's (which is currently the opposite of what the market is pricing in, but markets arent always efficient)
Fannie Mae does have a much larger market share, but keep in mind the Government seems to be pushing towards a Single Security (CSP). This benefits Freddie as it will allow them to steal market share from Fannie. All in all, you can't really go wrong with either. I'm split 55% Fannie and 45% Freddie, but tend to swap when arbitrage presents itself. My focus is always on FNMFN and FMCCT due to their yield and historical premium to Par. I also like FMCCP and FMCKJ. FMCKJ has a 5-year Call restriction (2012, 2017, 2022) which would prevent it from getting Called by the company until Dec 2022 [since it won't get Called this year]. FNMAS also has a 5-year Call restriction which means it can't get called until Dec 2020. FNMAO and FNMAP also have Call restrictions, but it's only for 2 years and I dont know the dates off-hand. These Preferreds help buy you security and lock-in Divis for a few years, as the Companies are likely to Call [buy back at Par Value or buy on the open market] the higher yielding Prefs at some point and these specific ones can't get Called except on the anniversary dates.
Hope this provides some clarification.
This is likely the reason for the big moves today: https://twitter.com/timdillen1/status/827533625604308992
I'm hearing Mnuchin might also get confirmed by the Senate today also. Possible Executive Order re: GSE's is on the table as well.
Buckle Up, might be an ever bigger spike later today.
I'm hearing Mnuchin might also get confirmed by the Senate today also. Possible Executive Order re: GSE's is on the table as well.
Buckle Up, might be an ever bigger spike later today.
