Author Topic: FNMA and FMCC preferreds. In search of the elusive 10 bagger.  (Read 4629451 times)

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15980 on: September 25, 2020, 11:03:16 AM »
From the IMF rag apparently FSOC voted unanmously to support FHFAs reproposed capital framework. How can FSOC approve it if it isnt finalized (or is it and we are just in a waiting game as assumed).

Apparently FSOC thinks the capital rules are not strict enough. Not sure how much of a blessing this was but glad there was no opposition.


SnarkyPuppy

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15981 on: September 25, 2020, 11:14:30 AM »
Are there any controls in place within the US government that restrict the incumbent from implementing laws subsequent to an election but before removal at inauguration that could potentially impact any contracts signed between UST and FHFA? 

Said another way, in the event Biden wins - are there any arguments to be made that PSPA amendments made during a "lame duck" period can be revoked?

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15982 on: September 25, 2020, 11:21:39 AM »
Are there any controls in place within the US government that restrict the incumbent from implementing laws subsequent to an election but before removal at inauguration that could potentially impact any contracts signed between UST and FHFA? 

Said another way, in the event Biden wins - are there any arguments to be made that PSPA amendments made during a "lame duck" period can be revoked?

same story as filing RBG's seat.  if you have the power to do it, then you have the power to do it even if with hindsight that power wasn't for too much longer

orthopa

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15983 on: September 25, 2020, 03:56:50 PM »
Based on the prepared statements of Calabria and FSOCs recomendations it doesnt appear the proposal capital levels are going to budge much if at all. Not a whole lot of tea reading other then Calabria saying the rule will be finalized in the coming months.


https://www.fhfa.gov/Media/PublicAffairs/Pages/Prepared-Remarks-of-Dr-Mark-A-Calabria-Director-of-FHFA-at-FSOC-Principals-Meeting-9-25-2020.aspx

https://home.treasury.gov/system/files/261/Financial-Stability-Oversight-Councils-Statement-on-Secondary-Mortgage-Market-Activities.pdf

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15984 on: September 25, 2020, 04:52:29 PM »
Based on the prepared statements of Calabria and FSOCs recomendations it doesnt appear the proposal capital levels are going to budge much if at all. Not a whole lot of tea reading other then Calabria saying the rule will be finalized in the coming months.


https://www.fhfa.gov/Media/PublicAffairs/Pages/Prepared-Remarks-of-Dr-Mark-A-Calabria-Director-of-FHFA-at-FSOC-Principals-Meeting-9-25-2020.aspx

https://home.treasury.gov/system/files/261/Financial-Stability-Oversight-Councils-Statement-on-Secondary-Mortgage-Market-Activities.pdf

agree. only hope I have is that there is a phasing in that permits GSEs to raise capital in a deliberate manner and without unreasonable conditions for dividends and exec bonuses

Luke 5:32

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15985 on: September 26, 2020, 06:26:57 AM »
Hmmm, interesting tweet from ACG...

https://twitter.com/ACGAnalytics/status/1309598464674869249
Full remarks from @MarkCalabria at #FSOC. Says they found adequate capital could be materially less:
The Atheist Delusion, watch here: https://www.youtube.com/watch?v=ChWiZ3iXWwM

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15986 on: September 26, 2020, 07:59:04 AM »
Hmmm, interesting tweet from ACG...

https://twitter.com/ACGAnalytics/status/1309598464674869249
Full remarks from @MarkCalabria at #FSOC. Says they found adequate capital could be materially less:

I don't see this in Calabria's remarks.  looks to me like a whoopsie

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15987 on: September 26, 2020, 08:04:19 AM »
Hmmm, interesting tweet from ACG...

https://twitter.com/ACGAnalytics/status/1309598464674869249
Full remarks from @MarkCalabria at #FSOC. Says they found adequate capital could be materially less:

I don't see this in Calabria's remarks.  looks to me like a whoopsie

Calabria:  "As the Council found, risk-based capital and leverage ratio requirements materially less than those in the proposed rule would likely not adequately mitigate the potential stability risk posed by the Enterprises. Indeed, more capital might be necessary."

cherzeca

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15988 on: September 26, 2020, 06:47:21 PM »
I have been researching ACB's writings, mostly law review articles, to see if I can understand her judicial philosophy and glimpse how she may regard the Collins case.  In doing so I came across this podcast, which is illuminating...rather than gleaning how she judges from opinions and law review articles, she comes right out and tells you in this speech how she judges:  https://podcasts.apple.com/us/podcast/madisons-notes/id1515595812?i=1000491179632

Midas79

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Re: FNMA and FMCC preferreds. In search of the elusive 10 bagger.
« Reply #15989 on: September 26, 2020, 07:06:39 PM »
It's really starting to look like 4% come hell or high water, and that Calabria really does see 4% as the de facto requirement rather than 2.5% with some buffers being nice. The question becomes "can FnF raise their g-fees enough to provide a competitive RoE on 4% without driving away a substantial amount of business?" Tim Howard thinks the answer is "no", and if he's right then all of recap and release is in jeopardy.

Calabria has said in the past that one way FnF can meet their capital requirements is to shrink their asset base and market share. Heck, this might have been his goal all along.