Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 1849330 times)

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8850 on: December 06, 2017, 04:58:41 PM »
i'm guessing that "some" GSE shareholders getting value means those who are preNWS shareholders.  if so this wont fly.
Perhaps this means dilution to common will impede great appreciation while preferreds might see face?

this is a purloined copy of a draft bill that likely wont see light of day much less 60 vote passage in senate


doc75

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8851 on: December 06, 2017, 05:02:23 PM »
i'm guessing that "some" GSE shareholders getting value means those who are preNWS shareholders.  if so this wont fly.

Do you say it wouldn't fly on legal grounds?

Politically speaking, this seems like the obvious way to go.   Trump made a big deal about "those hedge fund guys".  Whether they were friends in the past or not is immaterial: I think he'd love a solution that buys him the Main Street credibility of denying some of those guys a windfall while still allowing him to raise the finger to the Obama legacy.

BUT:  I'm the first to admit I'm completely naive here.


cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8852 on: December 06, 2017, 05:06:50 PM »
i'm guessing that "some" GSE shareholders getting value means those who are preNWS shareholders.  if so this wont fly.

Do you say it wouldn't fly on legal grounds?

Politically speaking, this seems like the obvious way to go.   Trump made a big deal about "those hedge fund guys".  Whether they were friends in the past or not is immaterial: I think he'd love a solution that buys him the Main Street credibility of denying some of those guys a windfall while still allowing him to raise the finger to the Obama legacy.

BUT:  I'm the first to admit I'm completely naive here.

this gets to the greece bonds question.  if congress thinks they can screw shareholders and then raise robust private capital, seems unlikely that wall street will comply...unless investors have short memories and attention spans

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8853 on: December 06, 2017, 05:27:39 PM »
i'm guessing that "some" GSE shareholders getting value means those who are preNWS shareholders.  if so this wont fly.

When did Ackman build his common stake? He was singing the praises of Corker and Warner not long ago. 
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

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8854 on: December 06, 2017, 05:29:40 PM »
i'm guessing that "some" GSE shareholders getting value means those who are preNWS shareholders.  if so this wont fly.

When did Ackman build his common stake? He was singing the praises of Corker and Warner not long ago.

post NWS (like almost everybody else...i think perry is the only one to build much pre-NWS). 

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8855 on: December 06, 2017, 05:34:35 PM »
https://www.bloomberg.com/amp/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus?__twitter_impression=true

Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.
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

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8856 on: December 06, 2017, 05:56:51 PM »
https://www.bloomberg.com/amp/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus?__twitter_impression=true

Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.

this is unambiguously favorable to GSEs, although the draft bill is likely too sketchy in transition to be implementable (committee staff usually are academics without sufficient real world experience to understand how to get anything complex done).  this is only a start, but it sounds better than the last corker/warner POS

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8857 on: December 06, 2017, 05:58:22 PM »
https://www.bloomberg.com/amp/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus?__twitter_impression=true

Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.

High five

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8858 on: December 06, 2017, 06:08:46 PM »
"Made whole" = par for junior prefs? "Some shareholders" = junior pref holders?

Those are the obvious bull conclusions to jump to, but "made whole" = "only compensated for losses, if any" and "some shareholders" = "those who have continuously held shares since before the NWS (or even conservatorship)" also fit.
« Last Edit: December 06, 2017, 06:13:50 PM by Midas79 »

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #8859 on: December 06, 2017, 06:11:42 PM »
I hear that both preferreds and common will do well. Preferreds get par and commons won't get $60.00 when they dived. That is what they mean that some won't fare as well as preferreds get 100% of par. . Remember they need to make money off warrants. I would not dance on this reporting by Joe.

Warner and Corker cannot get a bill through with their name stamped on it, no matter how good it is for preferreds or common shareholders. Once you see the bill, you will see that all are dead except large banks, that is all you can expect from Warner and Corker.

https://www.bloomberg.com/amp/news/articles/2017-12-07/lawmakers-plans-to-overhaul-fannie-and-freddie-come-into-focus?__twitter_impression=true

Under the proposal, preferred shareholders of Fannie and Freddie could be made whole or close to it, depending on the final outlines of the transition, the people said. But common shareholders may not fare as well, they said. Whether and how shareholders get compensated in the transition to the new system is still an open question. Investors in the companies include several prominent hedge funds.