Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 2425561 times)

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8110 on: September 14, 2017, 10:25:17 AM »
It is real. #8 bulletpoint
https://www.gop.com/rules-and-resolutions/

You mean loudmouths like fellow travelers, John Carney, John Light, Ed Demarco and Mel Watts? Who cares about them, they were on the wrong side to begin with. You can only go so far with wrong politics and the end will be real bad for these loudmouths.

does anyone have any details on how this document came to be formed? how "official" is this? still taken aback and hoping it is for real, bc agree w/ cherzeca, it marginalizes the anti gse loudmouths (we all know who)


DocSnowball

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8111 on: September 14, 2017, 10:33:18 AM »
So if rights of shareholders are respected, then commons are not worthless? Can commons still go to zero if rights are respected?

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8112 on: September 14, 2017, 10:34:09 AM »
Good question. What would be the value of common shares if warrants fetch them 100 billion?

https://howardonmortgagefinance.com/2017/07/31/a-pattern-of-deception/#comment-4355

So if rights of shareholders are respected, then commons are not worthless? Can commons still go to zero if rights are respected?
« Last Edit: September 14, 2017, 10:36:01 AM by emily »

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8113 on: September 14, 2017, 10:43:03 AM »
Good question. What would be the value of common shares if warrants fetch them 100 billion?

The Moelis plan has the government exercising the warrants and gaining $100B while existing common shares go to $9-13. That's the most recent number I can find that has substantial logic behind it.

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8114 on: September 14, 2017, 11:42:30 AM »
the rnc resolution reference to the $100MM figure is of course a direct (approving) reference to moelis blueprint.  this is a real big deal methinks because all non-GSE friendly proposals (ie MBA) do not afford treasury the ability to monetize warrants.  now the discussion with tbtf/mba is, why exactly do you want taxpayers to forego $100B?
« Last Edit: September 14, 2017, 11:54:30 AM by cherzeca »

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8115 on: September 14, 2017, 01:19:33 PM »
mnuchin vid live at politico pro:  https://www.pscp.tv/stevenmnuchin1/1lDGLkoQOyQKm

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8116 on: September 14, 2017, 01:27:11 PM »
Nothing new from Mnuchin, except that he views GSE stuff as a 2018 issue. He still expects the NWS dividends to be paid.

The moderator has pushed the issue on dodged questions a few times, e.g. why Mnuchin only specified hedge funds and not private equity when it comes to the elimination of carried interest. I really wish the moderator had asked how Mnuchin can reconcile his seemingly contradictory stances of wanting minimal risk to taxpayers and still expecting full NWS dividends.
« Last Edit: September 14, 2017, 01:29:14 PM by Midas79 »

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8117 on: September 14, 2017, 01:27:53 PM »
mnuchin vid live at politico pro:  https://www.pscp.tv/stevenmnuchin1/1lDGLkoQOyQKm

on gses, mnuchin says: he considers himself an expert on housing finance, wants to fix fannie and freddie, likely 2018, 30 yr prepayable mortgage vital, still expects dividends to be paid.

edit: my read:  fix could mean many things. mnuchin still opting for opaqueness and optionality. expecting divs to be paid is probably smart thing for a holder of a security to say when the div payment decision is with the issuer, fhfa
« Last Edit: September 14, 2017, 01:31:05 PM by cherzeca »

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8118 on: September 14, 2017, 01:28:15 PM »
mnuchin vid live at politico pro:  https://www.pscp.tv/stevenmnuchin1/1lDGLkoQOyQKm

Paraphrased "Given the delays on tax reform I think the GSE's will be fixed in 2018." Later, he said "as I've said all along I expect Watt to make the dividend payment."
Doesn't beat around the bush, gets right down to the business of Christ laying down His life and conquering death for you, me, and everybody else that accepts Him. "Oh death, where is your sting? Oh Hell, where is your victory?" Listen: https://www.youtube.com/watch?v=7bJzhkWVANc

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8119 on: September 14, 2017, 01:29:11 PM »
Hah!  We all typed the same thing about 30 seconds apart :-)
Doesn't beat around the bush, gets right down to the business of Christ laying down His life and conquering death for you, me, and everybody else that accepts Him. "Oh death, where is your sting? Oh Hell, where is your victory?" Listen: https://www.youtube.com/watch?v=7bJzhkWVANc