Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 1778428 times)

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8110 on: September 13, 2017, 02:18:21 PM »
Think I found my answer

https://twitter.com/MattGoldstein26/status/908021925712101376

Sen. Brown and 5 other Sen. Dems send letter to Mnuchin asking Treasury to let Fannie/Freddie to retain capital ahead of GSE reform plan.

Haven't seen the letter yet

Maybe another instance where trump administration will work constructively with dems


Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8111 on: September 13, 2017, 03:29:55 PM »
Think I found my answer

https://twitter.com/MattGoldstein26/status/908021925712101376

Sen. Brown and 5 other Sen. Dems send letter to Mnuchin asking Treasury to let Fannie/Freddie to retain capital ahead of GSE reform plan.

Haven't seen the letter yet

Letter: https://twitter.com/BrolinWalters/status/908091408757686272
You are willing to give your life, if necessary, to protect a stranger... me, my bride, each one of our children. For that I thank you every single day, veterans. And I consider you a friend. "Greater love has no one than this, that someone lay down his life for his friends." John 15:13

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8112 on: September 13, 2017, 03:48:47 PM »
Wow all of a sudden congress (democrats) now seem to care about what all of these minority groups have to say. 9/29 is the day or day before $$$ is to be sent to treasury right? Not a coincidence.

Congress seems to have taken to heart that Mnuchin is not discussing building capital with Watt. I certainly though otherwise as they have had meetings correct?

2nd last paragraph shows that congress no where near reform happening by end of 2017.

Question is what happens to shareholders if FnF are building capital until congress gets its act together say 6-18 months. They combined could have 15-20B by then no? I need to refresh my memory on the possible outcomes in a building capital scenario where they are released out of conservatorship etc. I have kept my investment but haven't thought about this in a while frankly because I never thought a day like this would come. Although at first glance it appears that congress just want to buy themselves more time.
« Last Edit: September 13, 2017, 04:12:24 PM by orthopa »

TonyG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8113 on: September 13, 2017, 04:05:16 PM »
if republicans get their tax reform done by year end, gses will need a lot more than just this dividend payment in capital retained

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8114 on: September 13, 2017, 04:10:27 PM »
if republicans get their tax reform done by year end, gses will need a lot more than just this dividend payment in capital retained

if desired, there are technical workarounds for this situation

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8115 on: September 13, 2017, 04:13:11 PM »
Wow all of a sudden congress (democrats) now seem to care about what all of these minority groups have to say. 9/29 is the day or day before $$$ is to be sent to treasury right? Not a coincidence.

Congress seems to have taken to heart that Mnuchin is not discussing building capital with Watt. I certainly though otherwise as they have had meetings correct?

2nd last paragraph shows that congress no where near reform happening by end of 2016.

Question is what happens to shareholders if FnF are building capital until congress gets its act together say 6-18 months. They combined could have 15-20B by then no? I need to refresh my memory on the possible outcomes in a building capital scenario where they are released out of conservatorship etc. I have kept my investment but haven't thought about this in a while frankly because I never thought a day like this would come. Although at first glance it appears that congress just want to buy themselves more time.

limbo.  we wait for the proposals and any potential action.  but from a better starting position.

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8116 on: September 13, 2017, 05:05:02 PM »
The volume and price surge seems disproportionate to the Senators' letter. We have seen those before, though the request for a reply by September 29 is new.

Edit: the letter might even be negative if Mnuchin was hoping to keep his plan under wraps. I don't see how he can dodge the question this time.

The Phillips comments are a much bigger deal imo. This is a Treasury official directly commenting that the conservatorships need to end. Recapitalization will have to precede that. For all the talk about "we do not want this construed as an intent to 'recap and release'," there sure are a lot of power players leaning towards that possibility.
« Last Edit: September 13, 2017, 05:12:02 PM by Midas79 »

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8117 on: September 13, 2017, 05:14:16 PM »
Based on the preferred alone the market must still see a way where FnF are allowed to retain capital, conservatorship ends and preferred still gets nothing based on todays prices at 20-30% of par.

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8118 on: September 13, 2017, 05:16:22 PM »
The volume and price surge seems disproportionate to the Senators' letter. We have seen those before, though the request for a reply by September 29 is new.

Edit: the letter might even be negative if Mnuchin was hoping to keep his plan under wraps. I don't see how he can dodge the question this time.

The Phillips comments are a much bigger deal imo. This is a Treasury official directly commenting that the conservatorships need to end. Recapitalization will have to precede that. For all the talk about "we do not want this construed as an intent to 'recap and release'," there sure are a lot of power players leaning towards that possibility.

Why do you not contemplate a reformed structure without the current two GSEs as part of the 'end of conservatorship'?

ValueMaven

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8119 on: September 13, 2017, 05:36:49 PM »
Its a nice positive...take it for what it is