Fannie Mae Preferred S (FNMAS)

[brandemarcus]

Just a comment on the exchange of views over on the fnma board. You can provide a lot of links to describe the situation in 2008, but the investment world stopped looking and analyzing the gse's after 2008. At least they stopped looking at Financial statements of the Gse's dated after 2008.
It was only the detached observer , John Hempton ( maybe because he lived in Australia) that took an objective look at the situation in August of 2009 and realized the situation was far better than the doom crowd was predicting. Note on his blog in August of 2008 , he said he wouldn't touch the stock with a ten foot poll. (although he didn't say that literally).

It was because the rest of the world wasn't looking that some might say in 2009 , some in the treasury saw an opportunity to get rid of the gse's by running up excess losses. How much was intentional or not, I don't know. I think Kyle Bass pumped the pfds in May of 2011 by showing the loss reserves were excessive and then said he sold because he realized that this was an intentional effort to kill them.

In any case, I admit to being internet challenged so I would only encourage people to find their way to the archived blog(Bronte capital) site in August 2008, August 2009 and November of 2009 for a prescient , contrarian view of the case for fnmas. It would have worked except for the politics.
Sorry I am unable to produce a link!