Fannie Mae (FNMA)

[rekcusdo]

"WRONG, the GSE today command a much bigger part of the market sector for 30 year mortgages when they were trading at their highs of $70s."

This is NOT how pps is determined.

PPS will be determined by portfolio value not market share, and the portfolio value now is half what it was when they were trading in their 70s.

As I've said before, a company with a 10% market share of a billion dollar market is going to have a higher PPS than a company with a 90% market share of a million dollar market.

Simply put, the GSEs may own more of the market, but the market is much less than it was before.

If anything, given the current portfolio value of the GSEs, the highest the PPS can really be adjusted to is 35 dollars (give or take). Granted, Ill take this adjustment any day of the week. Lol.