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


twacowfca

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Guest cherzeca

so corker becoming a lame (f)(d)uck will make his influence over the GSE reform debate more or less compelling?

 

i say less.  let the debate begin...

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so corker becoming a lame (f)(d)uck will make his influence over the GSE reform debate more or less compelling?

 

i say less.  let the debate begin...

 

Not sure if this is in jest, but I don't think the guy is going to go down without a fight.  If nothing else, the Fanniegate community has directly attacked him personally (removing whether it was justified or not) and there's a solid chance he puts up a fight for no other reason

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so corker becoming a lame (f)(d)uck will make his influence over the GSE reform debate more or less compelling?

 

i say less.  let the debate begin...

 

If Corker really is trying to get out ahead of a scandal then I agree, nobody will want to associate with him.

 

If not the outcome is much harder to predict. He will still be on the Banking and Finance Committee and might figure that he has nothing to lose by being blatant about his agenda. He could trade his vote on other issues for anti-GSE legislation votes.

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Mel Watt seems to be spending a lot of time with MBA.

 

December 2017

Director Mel Watt to give remarks at MBA's Summit on Diversity and Inclusion

Date: 12/4/2017

Location: Capital Hilton, 1001 16th Street, NW, Washington, D.C. 20036

 

October 2017

The Honorable Melvin L. Watt, Director, Federal Housing Finance Agency - General Session - A View From Washington at MBA Annual Convention and Expo 2017

Date: 10/23/2017

Time: 11:00 AM - 11:45 AM

Location: Denver Convention Center, 700 14th Street, Denver, CO 80202

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Tax framework PDF attached.

 

Link: https://fairandsimple.gop/

 

 

I may have missed it, but on first read of the PDF I don't see anything referencing GSE's, Fannie/Freddie, etc.

Thank you. Should there be any reference to something so specific in a pamphlet targeting the average citizen?

 

That said, any tax reform plan must have forced the authors to look into this:

 

"If Congress enacts such a reduction, it would negatively affect the value of our deferred tax assets and, we expect, result in a significant net loss and net worth deficit for the quarter in which the legislation is enacted," Fannie Mae President and CEO Tim Mayopoulos said Friday during the company’s first-quarter earnings call. "Such a deficit would require us to draw addition funds from Treasury.”

 

Maybe a solution has been agreed upon which we don't yet know?

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4,000,000 shares of FMCKM just traded hands.

 

https://www.otcmarkets.com/stock/FMCKM/quote

 

Was that a single transaction? For $100M in par exposure?!? Any idea if it was executed at the bid or ask?

 

The bid/ask before and after the transaction was 5.25/5.60 while the trade appears to have cleared at 5.40. I don't know if it was a buy or sell order.

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4,000,000 shares of FMCKM just traded hands.

 

https://www.otcmarkets.com/stock/FMCKM/quote

 

Was that a single transaction? For $100M in par exposure?!? Any idea if it was executed at the bid or ask?

 

The bid/ask before and after the transaction was 5.25/5.60 while the trade appears to have cleared at 5.40. I don't know if it was a buy or sell order.

 

Just looked at bloomberg - 4 transactions for 1,000,000 shares apiece at $5.35 and $5.40. Still can't tell if that was the bid/ask at the time because the 5.25/5.60 bid/ask was from 40 minutes prior to when the transaction was actually executed.

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4,000,000 shares of FMCKM just traded hands.

 

https://www.otcmarkets.com/stock/FMCKM/quote

 

Was that a single transaction? For $100M in par exposure?!? Any idea if it was executed at the bid or ask?

 

The bid/ask before and after the transaction was 5.25/5.60 while the trade appears to have cleared at 5.40. I don't know if it was a buy or sell order.

 

Just looked at bloomberg - 4 transactions for 1,000,000 shares apiece at $5.35 and $5.40. Still can't tell if that was the bid/ask at the time because the 5.25/5.60 bid/ask was from 40 minutes prior to when the transaction was actually executed.

 

I have only been looking at the level 2 on OTCmarkets.com, but I have checked it off an on throughout the day and I haven't seen the bid/ask budge from 5.25/5.60.

 

That volume still pales in comparison to the two 14M share blocks of FNMAT earlier this year.

 

Still, I wonder why FMCKM. The correlation between dividend yield and share price on the prefs has definitely weakened in the past several months, sitting around 0.45 (had been close to 0.9 in the past).

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4,000,000 shares of FMCKM just traded hands.

 

https://www.otcmarkets.com/stock/FMCKM/quote

 

Was that a single transaction? For $100M in par exposure?!? Any idea if it was executed at the bid or ask?

 

The bid/ask before and after the transaction was 5.25/5.60 while the trade appears to have cleared at 5.40. I don't know if it was a buy or sell order.

 

Just looked at bloomberg - 4 transactions for 1,000,000 shares apiece at $5.35 and $5.40. Still can't tell if that was the bid/ask at the time because the 5.25/5.60 bid/ask was from 40 minutes prior to when the transaction was actually executed.

 

I have only been looking at the level 2 on OTCmarkets.com, but I have checked it off an on throughout the day and I haven't seen the bid/ask budge from 5.25/5.60.

 

That volume still pales in comparison to the two 14M share blocks of FNMAT earlier this year.

 

Still, I wonder why FMCKM. The correlation between dividend yield and share price on the prefs has definitely weakened in the past several months, sitting around 0.45 (had been close to 0.9 in the past).

 

Might've simply been the only one available in that size - if you're managing a fund and buying in $100,000,000 blocks of par in illiquid names - it's probably better more important to enter/exit the exposures than it is to nitpick which one might outperform a hair due to higher dividend accruals.

 

I can imagine that if I was managing that amount, I'd have outstanding limit orders on all preferreds traded and just let which ones fill where they may.

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Might've simply been the only one available in that size - if you're managing a fund and buying in $100,000,000 blocks of par in illiquid names - it's probably better more important to enter/exit the exposures than it is to nitpick which one might outperform a hair due to higher dividend accruals.

 

I can imagine that if I was managing that amount, I'd have outstanding limit orders on all preferreds traded and just let which ones fill where they may.

 

If it was a Fannie series then the whole "2/3 of shareholders approval needed to change terms" things might apply, but that language isn't in the Freddie preferred circulars.

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