Nah, no reason to sell. We're now back to election day prices and Mnuchin says we have to get F&F out of Government control.
Yesterday's ruling was a set-back nonetheless, but Preferreds sold off way harder than they should have. If anything, yesterday's ruling was still positive for Preferreds as the DC Court said they would remand many of the claims that are central to the Prefs case.
Mnuchin is on CNBC tomorrow morning. He has a meeting today with Trump, Cohn, and Mulvaney which I imagine might be GSE-related. So we might see more fireworks tomorrow.
Indeed. Just another bump in the road in #FannieGate. Great buying opportunity for the Preferreds. Pref claims have been remanded back to Lamberth and we still have Sweeney. Yesterday's ruling actually strengthened the case for Prefs in Sweeney's court.
Mnuchin is still our "Trump" Card so to speak. Might see something tomorrow.
Josh Rosner has an incredible understanding the GSEs. Here's his take: http://finance.yahoo.com/video/happen-gses-under-trump-administration-183949533.html
FWIW: "We firmly believe that the rights of preferred shareholders in these two enormously profitable, publicly traded companies will be upheld one way or another,” says Fairholme CIO Bruce Berkowitz, one of the major holders of preferred shares in Fannie Mae and Freddie Mac.
http://www.valuewalk.com/2017/02/fairholme-provides-update-fannie-mae-freddie-mac/
Reminder -- Berkowitz and Mnuchin previously sat on the Board at $SHLD. I'm sure they've interacted since then re: F&F. And dont forget this: http://www.foxbusiness.com/politics...-time-to-jettison-fannie-mae-freddie-mac.html
http://www.valuewalk.com/2017/02/fairholme-provides-update-fannie-mae-freddie-mac/
Reminder -- Berkowitz and Mnuchin previously sat on the Board at $SHLD. I'm sure they've interacted since then re: F&F. And dont forget this: http://www.foxbusiness.com/politics...-time-to-jettison-fannie-mae-freddie-mac.html
I advise caution with Common shares. There's still too much uncertainty with how the companies will raise adequate capital (earnings dilution, etc) and also the future earnings streams will be significantly impacted if G-Fees are lowered (which I believe they will be). The Preferred holders are the ones fighting all the legal battles.
Keep in mind, the Preferreds were the only "winners" from the Perry appeal ruling. All 3 Appeals Judges stated that plaintiffs may move forward with their Breach of Contract and Breach of Implied Covenant claims, which are specific to Preferred shares.
I do think the Commons will do exceptionally well over the long term, likely 3+ years from now they could be trading over $20.
Not much new to report. Preferreds starting to bounce back while Commons languish. New article from Tim Howard today. Only relevant happening was yesterday's article from Jerome Corsi at InfoWars, and he did a follow-up today. While I realize InfoWars has some wild claims, Corsi is a Harvard graduate and is confirmed to have WH Press Credentials. Personally, I believe someone has fed Corsi these articles. However, this may be the beginning of a significant shift in the narrative. Have Alt Media report and everyone laughs only to have mainstream outlets take the bait and do some of their own research.
Tim Howard's latest -- https://howardonmortgagefinance.com/
Exclusive: Obama Illegally Robbed Fannie, Freddie To Fund Obamacare -- http://www.infowars.com/exclusive-obama-illegally-robbed-fannie-freddie-to-fund-obamacare/
Lawsuit: Obama Robbed Private Investors To Fund Obamacare -- http://www.infowars.com/lawsuit-obama-robbed-private-investors-to-fund-obamacare/
Tim Howard's latest -- https://howardonmortgagefinance.com/
Exclusive: Obama Illegally Robbed Fannie, Freddie To Fund Obamacare -- http://www.infowars.com/exclusive-obama-illegally-robbed-fannie-freddie-to-fund-obamacare/
Lawsuit: Obama Robbed Private Investors To Fund Obamacare -- http://www.infowars.com/lawsuit-obama-robbed-private-investors-to-fund-obamacare/
New Article from Epstein -- https://www.forbes.com/sites/richar...bly-upholds-the-net-worth-sweep/#ce3ed8a41671
Might be some volatility this week into next depending on if the NWS goes through on Friday. Either way, doesn't change the most likely outcome (release and recapitalize).
This came out today and it's a good read: https://www.americanbanker.com/opinion/a-no-brainer-for-trump-team-recapitalize-the-gses
Make sure to also check out Tim Howard's latest: https://howardonmortgagefinance.com/2017/03/20/risk-transfers-in-the-real-world/
Great buy-in opportunity for those that missed the first run-up. Expecting this to all be resolved this year.
This came out today and it's a good read: https://www.americanbanker.com/opinion/a-no-brainer-for-trump-team-recapitalize-the-gses
Make sure to also check out Tim Howard's latest: https://howardonmortgagefinance.com/2017/03/20/risk-transfers-in-the-real-world/
Great buy-in opportunity for those that missed the first run-up. Expecting this to all be resolved this year.
Josh Rosner was on Tucker Carlson last night to talk #FannieGate. Starting to get some big media attention. Probably have another ~6 months before we see some meaningful resolution, but Mnuchin could drop something at any time.
https://twitter.com/TuckerCarlson/status/849708841063395329
https://twitter.com/TuckerCarlson/status/849708841063395329
Bottom appears to be in. With Tax Reform talks back in play, housing will quickly follow.
http://www.reuters.com/article/us-i...ticsNews&utm_source=Twitter&utm_medium=Social
Earlier today: "Mnuchin says he's 'very focused' on housing reform, noting Fannie/Freddie are still in govt. control."
FNMFN and FMCCT are still the best Preferreds.
http://www.reuters.com/article/us-i...ticsNews&utm_source=Twitter&utm_medium=Social
Earlier today: "Mnuchin says he's 'very focused' on housing reform, noting Fannie/Freddie are still in govt. control."
FNMFN and FMCCT are still the best Preferreds.
ICBA released their GSE Reform proposal today -- http://www.icba.org/news-events/pre...ays-out-principles-for-housing-finance-reform
Hope you guys loaded up on the dip back to pre-election prices. It was truly a gift.
Hope you guys loaded up on the dip back to pre-election prices. It was truly a gift.
New post from Tim Howard -- https://howardonmortgagefinance.com/2017/04/25/narrowing-the-differences/
If you're looking for liquidity, then go with FNMAS or FMCKJ. They have a higher premium due to liquidity. If you are thinking dividends will get turned back on, then FNMFN or FMCCT or the ones to go with. If you want exposure to Par and aren't concerned about potential dividends, then go with the Variable Rate Preferreds such as FMCCI, FMCCJ, FMCCL for Freddie or FNMAO or FNMAP for Fannie.
