Fannie Mae Preferred S (FNMAS)

[camaro4me]

Freddie Mac just released their Q4 earnings. They had $227M in net income, $251M for comprehensive income, an 92% drop from the 3rd quarter of $2.8B.

The driver is the derivative losses to help reduce exposure to interest rate risk. Freddie Mac is still on hook to owe treasury $.9B as part of net worth sweep.

The total Freddie Mac has paid to Treasury is $91.8B vs the $72.3 B loaned to them as part of pspa.

What happens when Freddie Mac reports a loss? What will happen to their capital on hand? Time to end the net worth sweep.