Fannie Mae & Freddie Mac - Your Ticket to Fortune (and possibly Fame)

[kuwlness]

More positive shareholder news. We're getting close!

https://www.marketwatch.com/story/p...-shareholders-2017-12-08?mod=mw_share_twitter

 

[Steiner69eR]

Kuwl: Which are your favorite Prefs, again?

 

[kuwlness]

Kuwl: Which are your favorite Prefs, again?

Fannie: FNMFN, FNMAM, FNMAK and FNMAS (for liquidity)
Freddie: FMCCT, FMCCP, FMCKJ (for liquidity and 5-year lock-up), and some of the more rare shares -- FREJO, FREJP, FREJN, and FREGP (these usually trade at a discount because they're less known)

 

[kuwlness]

Wall St. Journal jumping on the band-wagon now too. Looks like this is pretty much done. 80% of Par of more is my guess. Congrats to everyone that played.

https://www.wsj.com/articles/government-shifts-gears-on-fannie-mae-freddie-mac-1513515600 (or for those of you without a subscription, here's a secret link you didn't get from me: http://archive.is/QdGy8)

Took a little longer than expected, but getting 7-10x gains from when i first posted this about 1.5 years ago, that's pretty awesome.

I'll still post updates over the next few months, but i imagine this is basically over and we're in cruise control. On to crypto.

 

[CHOPTALK]

How much will the common shares pay

 

[CHOPTALK]

How come all this good shit happening but my stock keeps going down

 

[kuwlness]

How much will the common shares pay

Who the hell told you to buy Common shares? Commons are probably gonna drop more. Sell those garbage Commons and buy Preferred. Commons might have a chance in the future, but Preferred are the easy money and always have been.

From what i'm hearing, we should be looking at ~70% of Par in the Preferred Shares.

 

[CHOPTALK]

what do i need to do with my 500 common shares

how do i convert them
never done this before

 

[truguru]

Fannie: FNMFN, FNMAM, FNMAK and FNMAS (for liquidity)
Freddie: FMCCT, FMCCP, FMCKJ (for liquidity and 5-year lock-up), and some of the more rare shares -- FREJO, FREJP, FREJN, and FREGP (these usually trade at a discount because they're less known)

never got into stocks. how are these doing? Like you forecasted? Was looking to get into it a bit.

 

[Steiner69eR]

Thoughts on where things stand? Thanks for your $0.02.

 

[Steiner69eR]

Any update on this storyline?

 

[kuwlness]

Finally. Took long enough. Stick with the Preferreds, this should all be over soon enough.

FNMFN, FMCCT ($50s) are probably your best bet, but some of the lower yielding $50s and $25s might also do well especially in a conversion scenario.

$$

 

[valium]

Finally. Took long enough. Stick with the Preferreds, this should all be over soon enough.

FNMFN, FMCCT ($50s) are probably your best bet, but some of the lower yielding $50s and $25s might also do well especially in a conversion scenario.

$$

Why? is there a court ruling coming out soon? i know Mnuchin made a statement a few weeks ago about getting Fannie and Freddie out from conservatorship. Anything more other than speculation that the goverment is starting to move to do something? This could still take years the way goverment usually moves to do something.

 

[valium]

Good to see you back in this thread after a long time away. a few months back i saw a big hedge fund guy who held a big position in these preferreds sold half his position. Made me think maybe he knows something and i got out of half my position. Still holding on to the rest.

 

[kuwlness]

Winning!

https://www.marketwatch.com/story/f...and-freddie-out-of-conservatorship-2019-01-18

 

[kuwlness]

Why? is there a court ruling coming out soon? i know Mnuchin made a statement a few weeks ago about getting Fannie and Freddie out from conservatorship. Anything more other than speculation that the goverment is starting to move to do something? This could still take years the way goverment usually moves to do something.

See above post. It's the new FHFA Director, Joseph Otting, who has a history with Mnuchin (Treas Sec.) and John Paulson (huge owner of GSE Prefs). This should be over soon. Once they divulge the details of the GSE's release (hopefully it mirrors the Moelis Blueprint), we'll know how everything will work. Prefs are getting paid either way.

dbanana0-9

 

[Badgerresh]

nice

 

[Steiner69eR]

Stop thinking 70% of the par value will be paid out? I’m a little late to the party but still a couple bags on the table.

Is there a reason for your estimate of 70% of par?

Appreciate all your insight and effort here.

Good listen for anyone who is intrigued by this: https://itunes.apple.com/ca/podcast/quoth-the-raven/id1348446973?mt=2&i=1000418105269

Best,
Steiner

 

[Steiner69eR]

***still thinking the 70% par value will be paid out?***

 

[kuwlness]

***still thinking the 70% par value will be paid out?***

Seems highly likely to me. I'm actually more preferential towards a Conversion to Commons at Par Value. That would be an enticing deal as Preferreds would convert at Par, and could then participate in any up-side Commons may have.