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FNMA and FMCC preferreds. In search of the elusive 10 bagger.


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Posted

Wow, could be a big day.

 

http://pulse.com.gh/bi/finance/trump-is-reportedly-going-to-sign-executive-orders-on-friday-to-repeal-two-huge-wall-street-regulations-id6162623.html

 

"Cohn also told the Journal that the executive order will direct the Treasury department to change Fannie Mae and Freddie Mac, the government-backed mortgage lenders. Additionally, Cohn said that the executive action would not impact the Consumer Financial Protection Bureau, which was created as a part of Dodd-Frank."

 

 

I've been waiting 5 years for this day.

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Guest cherzeca
Posted

 

so we dont know what will happen but it will happen soon....

Posted

 

so we dont know what will happen but it will happen soon....

 

@cherzeca

 

If you don't mind sharing, what is your mix of holdings prfd/common and are you banking on a conversion?

Posted

 

Gary Cohn: "So, the GSE reform is definitely on our agenda.  Treasury Secretary designee Steve Mnuchin has been spending a lot of time working on that.  Once he gets approved and confirmed Steve will be taking that on as one of his early priorities.  So we definitely have some plans in place to work on that, and hopefully he gets approved as soon as possible."

Posted

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

Posted

I have bought prefs in Fido last year and before that. But clearly the situation is dynamically changing and Fido does prohibit buying grey/no info stocks, so it's possible that you cannot buy the prefs anymore.

 

I did put in a limit order today just for fun and it seems to have gone through (but not executed, since price is higher):

 

Buy 100 Shares of FNXXX with a Limit Order (Day) at $12.00.

 

So... I don't know. :)

Maybe they allow me to buy it because I already have a position...

Posted

If the belief as we know is that FnF are going to be preserved and are important, then the most logical step is to immediately allow capital to build by ending the NWS. Does anyone know if this can be done via an executive order?

Posted

If the belief as we know is that FnF are going to be preserved and are important, then the most logical step is to immediately allow capital to build by ending the NWS. Does anyone know if this can be done via an executive order?

 

My read is that an executive order can simply "enforce" the Tsy Dpt to find a solution to the current situation.  An EO by itself won't do anything to the GSE's - but it will basically provide the tailwind for Mnuchin to implement a 4th amendment.  Just my 2c. 

Posted

http://pulse.com.gh/bi/finance/trump-is-reportedly-going-to-sign-executive-orders-on-friday-to-repeal-two-huge-wall-street-regulations-id6162623.html

 

"Cohn also told the Journal that the executive order will direct the Treasury department to change Fannie Mae and Freddie Mac, the government-backed mortgage lenders. Additionally, Cohn said that the executive action would not impact the Consumer Financial Protection Bureau, which was created as a part of Dodd-Frank."

 

Trump's calendar shows he plans on signing executive orders today at noon.  Buckle up.

(my emphasis added on "executive order" in quote above)

 

TrumpCalendar2-3-17.jpg.4d53c3a6d18b9f088116d61ca5e5fa6c.jpg

Guest cherzeca
Posted

fnmas outperforming fnma 2:1.  seems people are seeking risk in the name, but are risk adverse in their choice within name. 

Guest cherzeca
Posted

 

Again, maybe I over read things but look at his body language and eye contact. Something is up.

 

something is up.  if you recall during mnuchin's hearing, he said at one point "i havent looked into it" in answer to a detailed question on GSEs.  now, cohn says mnuchin has done alot of work on it.  this is an administration that is all about action

Posted

I had the same issue--they wouldn't accomodate. The only option are to buy FMCCL or FNMA. I chose FNMA.

 

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

Posted

 

Again, maybe I over read things but look at his body language and eye contact. Something is up.

 

something is up.  if you recall during mnuchin's hearing, he said at one point "i havent looked into it" in answer to a detailed question on GSEs.  now, cohn says mnuchin has done alot of work on it.  this is an administration that is all about action

 

Wish they would hold their cards a little closer until he's fully confirmed and it's a done deal. 

Posted

its clear now mnuchin was being deliberately coy in senate hearings. this seems to favor the gses, because why be coy if you wanted to reform the gses (what warner wants)?

 

 

 

 

Posted

I had the same issue--they wouldn't accomodate. The only option are to buy FMCCL or FNMA. I chose FNMA.

 

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

 

I've bought through fidelity.  Ask to be transferred to the fixed income desk and they'll let you buy.  I told the guy I was a fund manager (which is true) and they stopped giving me so much shit.

Posted

 

Again, maybe I over read things but look at his body language and eye contact. Something is up.

 

something is up.  if you recall during mnuchin's hearing, he said at one point "i havent looked into it" in answer to a detailed question on GSEs.  now, cohn says mnuchin has done alot of work on it.  this is an administration that is all about action

 

Wish they would hold their cards a little closer until he's fully confirmed and it's a done deal.

 

Thinking the same, but if the admin is clear on its intentions, it removes a great deal of pressure off the TS.

Posted

Ridiculous that my portfolio is now influenced by this dumb policy. Oh well--if FNMA outperforms, then I have Fidelity's incompetence to thank

 

I had the same issue--they wouldn't accomodate. The only option are to buy FMCCL or FNMA. I chose FNMA.

 

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

 

I've bought through fidelity.  Ask to be transferred to the fixed income desk and they'll let you buy.  I told the guy I was a fund manager (which is true) and they stopped giving me so much shit.

Guest cherzeca
Posted

its clear now mnuchin was being deliberately coy in senate hearings. this seems to favor the gses, because why be coy if you wanted to reform the gses (what warner wants)?

 

exactly.  with warner and crapo in nomination hearing, that was the perfect opportunity for mnuchin to throw out red meat to them.  he didn't but demurred by saying he hadnt thought that much about GSEs.  now cohn says mnuchin has done alot of work and they have plans.  dont know what those plans are but i am guessing that they arent directed at pleasing warner and crapo

Posted

I had the same issue--they wouldn't accomodate. The only option are to buy FMCCL or FNMA. I chose FNMA.

 

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

 

Do you mean FMCC or FMCCL?? Lol, that's the one preferred they allow?

 

I had the same issue--they wouldn't accomodate. The only option are to buy FMCCL or FNMA. I chose FNMA.

 

Has anyone successfully bought the preferreds through a Fidelity account? My family and I have some accounts there and just tried purchasing preferreds today, and it didn't work. Called up Fidelity and apparently they have blocked ALL FNMA and FMCC preferreds from puchases from ALL clients, regardless of low or high net worth or type of account.... They told me since they don't pay dividends, they are considered too "high risk" and so they won't allow them. Yet they allow the common, and I settled for those. What a stupid policy.

 

I've bought through fidelity.  Ask to be transferred to the fixed income desk and they'll let you buy.  I told the guy I was a fund manager (which is true) and they stopped giving me so much shit.

 

Yea, I called again and spoke with a manager and this is the option I got. So I made the trade over the phone and got the online rate.

 

I bought some preferreds today from Fidelity; no problems buying online.

 

Interesting, did you need to get special approval for this, or were you always able to do it. What tickers did you buy? And what kind of account do you have if you don't mind me asking?

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