Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 3222779 times)

18436572

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12980 on: July 12, 2019, 07:57:18 AM »
https://www.wsj.com/articles/former-freddie-mac-ceo-plans-to-keep-hand-in-housing-finance-11562932800?shareToken=stacda0ce30d1d455ca47e0c1bf814b6ff&reflink=share_mobilewebshare

"Mr. Layton: No, it isnít impossible. Four or five years of retained earnings, then do an IPO of more-likely digestible size that would be contemporaneous with the conservatorship ending and with the shareholders getting their full rights. Thatís the baseline. I know a lot of people who would love to accelerate from that, but then they have to deal with all of these trade-offs. That acceleration is one area thatís hard.
"

« Last Edit: July 12, 2019, 08:12:37 AM by 18436572 »


cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12981 on: July 12, 2019, 08:28:40 AM »
https://www.wsj.com/articles/former-freddie-mac-ceo-plans-to-keep-hand-in-housing-finance-11562932800?shareToken=stacda0ce30d1d455ca47e0c1bf814b6ff&reflink=share_mobilewebshare

"Mr. Layton: No, it isnít impossible. Four or five years of retained earnings, then do an IPO of more-likely digestible size that would be contemporaneous with the conservatorship ending and with the shareholders getting their full rights. Thatís the baseline. I know a lot of people who would love to accelerate from that, but then they have to deal with all of these trade-offs. That acceleration is one area thatís hard.
"

big news day.  while Layton makes a far point that it would be easier to do an offering if one retains earnings for four years and do a re-IPO then, which is his baseline, he doesn't really address what I expect to happen, which is to do an initial re-IPO up front along with retaining earnings, and a final offering(s) as capital is built up.  his point may simply be that you cant do an offering while in conservatorship.  he didn't make that point, but if that is his point, then he should explain it.

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12982 on: July 12, 2019, 10:03:20 AM »
All this news deluge does is prove no ones knows any more then anyone else. What else is new. At this point wondering what is taking so long is useless IMO as the possibilities are endless, both good and bad. Can only wait for FHFA capital rules and Treasury Plan.

Back to waiting for Godot.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12983 on: July 12, 2019, 10:18:00 AM »
All this news deluge does is prove no ones knows any more then anyone else. What else is new. At this point wondering what is taking so long is useless IMO as the possibilities are endless, both good and bad. Can only wait for FHFA capital rules and Treasury Plan.

Back to waiting for Godot.

and the HUD plan.  as you recall POTUS asked for both, and inasmuch as Phillips worked at treasury and not HUD (and therefor probably didn't have much input on the HUD plan), god knows the status of the HUD plan.  I infer from calling for both plans that there will be some coordination between the plans, but it could be that we are all waiting on HUD

allnatural

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12984 on: July 12, 2019, 10:50:50 AM »

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12985 on: July 12, 2019, 10:53:17 AM »
Interesting development... https://twitter.com/os4___/status/1149737247375273985

The only quote in the entire article. Presidential priority.  Updated 10 minutes ago.

“The president earlier this year instructed the Department of Treasury to develop a comprehensive plan for bold reform,” White House spokesman Judd Deere said in an email statement. The National Economic Council, Treasury, Federal Housing Finance Agency and others “continue to work together on this presidential priority and anything to suggest otherwise is false,” Deere said.

I also wouldn't completely discount the possibility that articles in the past two days discussing receivership and delay, delay, delay without one high-ranking source or even an anonymous quote were the work of those that have been so adamantly against the GSE's for many years.
« Last Edit: July 12, 2019, 01:28:05 PM by Luke 5:32 »
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

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12986 on: July 12, 2019, 11:37:48 AM »
also, how do you (and others here) interpret craig's departure now?

More color based on my previous reply. According to Bloomberg article (yeah I know) https://www.bloomberg.com/news/articles/2019-06-17/craig-phillips-leaves-treasury-before-fannie-report-is-finished.

"Craig Phillips, a top aide to Treasury Secretary Steven Mnuchin, left the agency last week before the release of a housing-finance plan he was expected to finish, according to people familiar with the matter.

Phillips, who said in May that he was planing to step down, led the Treasury Departmentís effort to draft a plan to get Fannie Mae and Freddie Mac out of U.S. conservatorship. Federal Housing Finance Agency Director Mark Calabria said last week that he hoped Treasuryís plan to return the companies to private ownership would come by the end of the month. The White House is reviewing a draft of the proposal, people familiar with the matter have said."

Phillips wrote the draft and moved on. Not sure there is much else to glean from that.

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12987 on: July 12, 2019, 12:56:27 PM »
Even White House had to debunk Bloomberg's fake coverage, a rare thing for White House to do so. The writer of the piece should resign and hope Chief Editor of Bloomberg News is notified.

no_free_lunch

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12988 on: July 12, 2019, 08:09:49 PM »
 Nice find allnatural.

In the end, who cares. If anything this provided an opportunity to invest.  Fannie isn't hurt by this.  They will still package mortgages. They didn't have to raise capital today.   In the end all that matters is what Trump admin does.  Maybe this will serve as a reminder to move reform forward.
« Last Edit: July 12, 2019, 09:34:47 PM by no_free_lunch »

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #12989 on: July 13, 2019, 10:19:14 AM »
Nice find allnatural.

In the end, who cares. If anything this provided an opportunity to invest.  Fannie isn't hurt by this.  They will still package mortgages. They didn't have to raise capital today.   In the end all that matters is what Trump admin does.  Maybe this will serve as a reminder to move reform forward.

good reason always to have some dry tinder