Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4358567 times)

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15790 on: July 11, 2020, 03:12:43 PM »
https://seekingalpha.com/article/4357864-boom-scotus-granting-cert-on-collins-claims-and-seila-scotus-decision-is-no-longer-when-for

Thank you.

It's not as clear to me that the few comments in Seila that relate to backward relief are as transferable to Collins as you claim but there's no point in arguing that.

What if Calabria wants to settle but Tsy doesn't?  After all it's their 190bn not FHFA's.

@IG. just ask yourself why scotus remanded for govt to press its claim that the CID was ratified.  if there is no backward relief in Seila, then there is no need for govt to argue that there was ratification.  only rational way to understand the case


orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15791 on: July 11, 2020, 04:15:08 PM »
Orthopa:  What would exchanging jr pfd for common accomplish?

It doesn't increase capital.  It just converts Tier 1 capital to CET1 capital.

The 30 day trailing price is as good a mechanism as any for setting the ratio, but I'm struggling to understand the rationale for such an exchange.

Agree does not raise capital but FHFA put emphasis on CET1 capital in the capital rule and their presentation afterwards. Converting preferred to common is a zero cost transaction and instantly raises 33B. Also once the Sr preferred is gone it puts all shareholders; treasury via warrants, jr preferred once converted, and legacy common on a level playing field going forward.

I cant think of any reasons why they would not convert them? Why deal with the headache of paying or not paying a div on expensive legacy jr preferred while trying to build capital? Then how do you sell additional preferred at expected lower interest rates then the jr preferred. Too many headaches.

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15792 on: July 11, 2020, 04:24:36 PM »
Orthopa:  What would exchanging jr pfd for common accomplish?

It doesn't increase capital.  It just converts Tier 1 capital to CET1 capital.

The 30 day trailing price is as good a mechanism as any for setting the ratio, but I'm struggling to understand the rationale for such an exchange.

Agree does not raise capital but FHFA put emphasis on CET1 capital in the capital rule and their presentation afterwards. Converting preferred to common is a zero cost transaction and instantly raises 33B. Also once the Sr preferred is gone it puts all shareholders; treasury via warrants, jr preferred once converted, and legacy common on a level playing field going forward.

I cant think of any reasons why they would not convert them? Why deal with the headache of paying or not paying a div on expensive legacy jr preferred while trying to build capital? Then how do you sell additional preferred at expected lower interest rates then the jr preferred. Too many headaches.

Also makes plaintiffs happy and very likely removes legal overhang, which is a massive impediment to any capital raise.
"You are life, You are life, in You death has lost its sting.  I'm running to Your arms, I'm running to Your arms.  The riches of Your love will always be enough, nothing compares to Your embrace.  Light of the world, forever reign." Listen: https://www.youtube.com/watch?v=ADuWzd7x25c

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15793 on: July 12, 2020, 08:09:22 AM »
“1.375 common share for each $25 preferred if the conversion happens at all. As a preferred holder, I do not want to root for conversion but root for dividends to be turned back on.
Focus should be on getting 300 billion back through Scotus, releasing 10,000 docs plus docs under presidential privilege, relist, increasing G fee , selling back warrants to the companies at the same price they were purchased at $0.001 per share, file in scotus of Venezuela rip off where shares were valued at $0.001 per share without any merit. Don’t give up when Scotus has finally accepted the case after many conferences as it is compelling and at least 4 judges know of the Venezuela rip off “

emily

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15794 on: July 12, 2020, 08:38:20 AM »
“It is not in interest for the admin to settle. Rather releasing those docs is. Forget about settlement. Settlement is done by those who did wrong. The NWS was started by an acting director who had no authority: wasn’t elected, wasn’t vetted by the senate. Illegal. “

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15795 on: July 13, 2020, 05:52:53 AM »
Tim Howard submitted his comment on cap rule proposal...

https://howardonmortgagefinance.com/2020/07/13/comment-on-fhfa-capital-re-proposal/
"You are life, You are life, in You death has lost its sting.  I'm running to Your arms, I'm running to Your arms.  The riches of Your love will always be enough, nothing compares to Your embrace.  Light of the world, forever reign." Listen: https://www.youtube.com/watch?v=ADuWzd7x25c

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15796 on: July 13, 2020, 07:00:29 AM »
apparently calabria gave a recent speech at Cato.  anyone have a link?


cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15798 on: July 13, 2020, 04:22:45 PM »
https://www.cato.org/multimedia/cato-daily-podcast/mortgage-markets-covid-19

This one?

thanks.  Bove mentioned a new speech at Cato, but I imagine it is this. tidbit at end was constructive though not much meat on bone

DocSnowball

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15799 on: July 14, 2020, 09:27:14 AM »
https://www.cato.org/multimedia/cato-daily-podcast/mortgage-markets-covid-19

This one?

thanks.  Bove mentioned a new speech at Cato, but I imagine it is this. tidbit at end was constructive though not much meat on bone

Actions speak louder than words. One thing that is dissonant is his counting current retained earnings as capital, whereas the amendment they did only increases the liquidation preference to that amount. If it was true retained capital, our property would not be what it is. Probably things are very very complex at his end, but actions are speaking louder than words for me. It's only the stick of the courts that is a comfort - it'll be difficult hosing shareholders at this juncture with the NWS and FHFA in the spotlight for the next year or so.