Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2952552 times)

Sunrider

  • Hero Member
  • *****
  • Posts: 524
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10930 on: December 07, 2018, 10:35:49 AM »
@IG. not surprised at all.  this is a special situation, event name.  most hedges etc who are in this will want as wide an exit door as they can find among the prefs in the event of an event

Hmm ... wondering if it makes sense to swap some FNMAS into FNMAJ - similar coupon but at 20% discount.... I presume there's no reason to think the different pref series will be treated differently if there is a deal / conversion / etc.?

Thanks!


Luke 5:32

  • Hero Member
  • *****
  • Posts: 2356
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10931 on: December 07, 2018, 11:26:33 AM »
Rumor mill: Calabria to head FHFA, Otting to serve as interim.

https://www.insidemortgagefinance.com/imfnews/1_1500/daily/white-house-to-name-mark-calabria-to-head-fhfa-1000048717-1.html?ET=imfpubs:e11655:73599a:&st=email&s=imfnews

It appears that conservative economist Mark Calabria – presently serving on the staff of Vice President Mike Pence – will be nominated by the Trump administration to be the next director of the Federal Housing Finance Agency. Of course, it hasn’t happened yet. All this week we heard from a handful of Washington-based lobbyists and advisors who thought the announcement would come by the weekend. (So far, no.) But there’s a twist as well. The White House is expected to name Comptroller of the Currency Joseph Otting interim FHFA director, wearing two hats. It’s just a hop, skip and a jump from the OCC building to FHFA headquarters…
Invest for retirement?  Sure.  But investing in eternity is infinitely more important.  Don't get it twisted.  "...but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal."  Matthew 6:20

cherzeca

  • Hero Member
  • *****
  • Posts: 1734
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10932 on: December 07, 2018, 12:28:16 PM »
turns out Otting is a Mnuchin boy.  from wikipedia:

"Otting was President, CEO, and a board member of OneWest Bank, N.A.,[14] from October 2010 until August 2015, when the bank merged with CIT Group, which purchased OneWest Bank for $3.4 billion, following regulatory approval.[15] He served as President of CIT Bank and Co-President of CIT Group from August 2015 to December 2015.[16]

At OneWest, he worked closely with the bank’s founder, Steven Mnuchin, who later became the U.S. Secretary of the Treasury.[17] Mnuchin led a group that purchased the California-based residential lender, IndyMac Federal Bank, FSB, on March 19, 2009, from the FDIC to create OneWest, FSB.[18] The FDIC established IndyMac Federal Bank, FSB, in 2008 when IndyMac Bank, F.S.B., failed.[19] OneWest Bank, FSB, converted to a national bank and was renamed OneWest Bank, N.A., in February 2014, as the bank transitioned from a residential lender to a full-service bank.[20]"

rros

  • Hero Member
  • *****
  • Posts: 861
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10933 on: December 07, 2018, 12:32:32 PM »
Maybe they do the 4th with Otting while Calabria "inherits" the situation and appears cleaner.

DRValue

  • Sr. Member
  • ****
  • Posts: 265
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10934 on: December 07, 2018, 12:54:50 PM »
Maybe they do the 4th with Otting while Calabria "inherits" the situation and appears cleaner.

I'd go with something like that.

They're doing similar with the gse ceos when they leave conservatorship.
Not Investment Advice. Do Your Own Research.

cherzeca

  • Hero Member
  • *****
  • Posts: 1734
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10935 on: December 07, 2018, 12:57:09 PM »
so the rumor is that a close business associate of Mnuchin is to be acting director and a guy who co-wrote a scathing indictment of the NWS (https://www.dropbox.com/s/sb8h3cgub74u9c6/Krimminger-Calabria-HERA-White-Paper-Jan-29.pdf?dl=0) is to be nominated as director (subject to consent by a R majority...and likely will be given a non-confirmation job at FHFA before confirmation).

why isn't MBA raging against this?

Midas79

  • Sr. Member
  • ****
  • Posts: 386
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10936 on: December 07, 2018, 01:20:53 PM »
why isn't MBA raging against this?

Crafting a response that does so while giving lip service to affordable housing takes time, you know.

rros

  • Hero Member
  • *****
  • Posts: 861
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10937 on: December 07, 2018, 01:35:15 PM »
so the rumor is that a close business associate of Mnuchin is to be acting director and a guy who co-wrote a scathing indictment of the NWS (https://www.dropbox.com/s/sb8h3cgub74u9c6/Krimminger-Calabria-HERA-White-Paper-Jan-29.pdf?dl=0) is to be nominated as director (subject to consent by a R majority...and likely will be given a non-confirmation job at FHFA before confirmation).

why isn't MBA raging against this?
Which makes you wonder, are Otting/Calabria really good news for us?

cherzeca

  • Hero Member
  • *****
  • Posts: 1734
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10938 on: December 07, 2018, 01:40:02 PM »
could be MBA's definition of a "win" has become saddle GSEs with a high capital requirement, which should raise G fees which should mean more underwriting profit for tbtf on mortgages tbtf originate.  the whole GSE wind down and tbtf inherit the business idea may be gone with the wind (and corker and Hensarling)

allnatural

  • Full Member
  • ***
  • Posts: 149
Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #10939 on: December 07, 2018, 01:52:51 PM »
More notably, Otting is known for being the restructuring guy during his time at OneWest... Wonder what the GSEs are about to go through?