Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 1951775 times)

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9180 on: January 17, 2018, 03:10:24 PM »
FHFA document attached...
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


Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9181 on: January 17, 2018, 04:01:30 PM »
Calabria earlier today...
With regard to the administration’s position on housing finance and Fannie Mae and Freddie Mac, Calabria insisted he was not announcing anything for the time being, but, “We do want to see our state-owned enterprises move towards liberalization.”
https://www.marketwatch.com/amp/story/guid/3F8481DA-FBCD-11E7-8AB6-ABAEF652B326?__twitter_impression=true
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 #9182 on: January 17, 2018, 04:14:56 PM »
i'm waiting for phillips' presentation tomorrow, as it is hard to tell whether watt is seeking to preempt phillips with support or retort.  but fhfa's perspectives are directionally very good for shareholders

SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9183 on: January 17, 2018, 04:19:39 PM »
i'm waiting for phillips' presentation tomorrow, as it is hard to tell whether watt is seeking to preempt phillips with support or retort.  but fhfa's perspectives are directionally very good for shareholders

Agree - but given the clear coordination between FHFA and Treasury with respect to the Q4 buffer I'd infer further coordination.    My opinion is very biased of course.   

With that said - “MBA is grateful for the well-informed input provided by the Director and hope that it contributes to momentum for congressional action on reform," said MBA head lobbyist, Bill Kilmer.

But it's possible MBA sees where this is going and accepting reality + a partial win (MBS guarantee).    Consistent with Stevens resignation.   
« Last Edit: January 17, 2018, 04:22:53 PM by SnarkyPuppy »

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9184 on: January 18, 2018, 05:36:50 AM »
Let the GSEs Pay Us Back Act of 2017
Sponsor: Rep. Capuano, Michael E. [D-MA-7] (Introduced 01/12/2017)

Under an existing Preferred Stock Purchase Agreement, net income from the GSEs is directed to Treasury as a dividend but is not counted toward repayment of the GSEs' debt. The bill requires this agreement to be modifie
d such that: (1) the amounts previously borrowed by the GSEs from Treasury shall be treated as a loan, in accordance with specified terms; and (2) payments made under the agreement by the GSEs to Treasury, including payments made prior to the agreement's modification, shall be treated as payments of principal and interest under such loan.


https://www.congress.gov/bill/115th-congress/house-bill/491?loclr=cga-bill
« Last Edit: January 18, 2018, 05:40:02 AM by Luke 5:32 »
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

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9185 on: January 18, 2018, 05:44:14 AM »
Let the GSEs Pay Us Back Act of 2017
Sponsor: Rep. Capuano, Michael E. [D-MA-7] (Introduced 01/12/2017)

Under an existing Preferred Stock Purchase Agreement, net income from the GSEs is directed to Treasury as a dividend but is not counted toward repayment of the GSEs' debt. The bill requires this agreement to be modifie
d such that: (1) the amounts previously borrowed by the GSEs from Treasury shall be treated as a loan, in accordance with specified terms; and (2) payments made under the agreement by the GSEs to Treasury, including payments made prior to the agreement's modification, shall be treated as payments of principal and interest under such loan.


https://www.congress.gov/bill/115th-congress/house-bill/491?loclr=cga-bill

I know this is from early 2017 but I received an e-mail alert from Congress.gov that read "H.R.491 - Let the GSEs Pay Us Back Act of 2017 (115th Congress) has changes in summaries."
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

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9186 on: January 18, 2018, 07:19:36 AM »
I think Watt's letter is a good reason to sell and/or stay away from the commons, at least for now.

https://www.marketwatch.com/story/as-fannie-and-freddie-reform-talk-heats-up-their-regulator-speaks-up-2018-01-18

Quote
Mark Zandi, chief economist at Moody’s Analytics and a long-time housing finance watcher who advanced his own proposal in 2016, called it “a good plan both from an economic and political perspective.”

We now have supportive quotes from David Stevens and Mark Zandi. The former wants FnF neutered and the latter wants them dead. Each are assuredly biased, but they both like Watt's proposal, leading me to believe they see FnF as being severely weakened by it.

Even if commons are not diluted via warrant exercise and equity raises, Fannie and Freddie's earning power could be decreased enough with other market entrants to severely limit the common's long-term upside.


Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9187 on: January 18, 2018, 07:57:57 AM »
Quote
Mark Zandi, chief economist at Moody’s Analytics and a long-time housing finance watcher who advanced his own proposal in 2016, called it “a good plan both from an economic and political perspective.”

We now have supportive quotes from David Stevens and Mark Zandi. The former wants FnF neutered and the latter wants them dead. Each are assuredly biased, but they both like Watt's proposal, leading me to believe they see FnF as being severely weakened by it.

It's getting increasingly difficult to kill the thesis of the preferred shares.
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

investorG

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9188 on: January 18, 2018, 08:05:31 AM »
Quote
Mark Zandi, chief economist at Moody’s Analytics and a long-time housing finance watcher who advanced his own proposal in 2016, called it “a good plan both from an economic and political perspective.”

We now have supportive quotes from David Stevens and Mark Zandi. The former wants FnF neutered and the latter wants them dead. Each are assuredly biased, but they both like Watt's proposal, leading me to believe they see FnF as being severely weakened by it.

It's getting increasingly difficult to kill the thesis of the preferred shares.

could get railroaded in about an hour's time.  tim howard said there should be prepared remarks released.  if he's going to say something material, it would be improper not to release something concurrently.

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #9189 on: January 18, 2018, 08:34:34 AM »
could get railroaded in about an hour's time.

Agree, it's possible.  Just don't know how probable at this point.
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