Fannie Mae (FNMA)

[guadis]

KBW bears not buying surge in Fannie Mae, Freddie Mac
Dec. 5, 2016 12:27 PM ET|About: Fannie Mae (FNMA)|By: Stephen Alpher, SA News Editor
Yes, incoming Treasury Secretary Steven Mnuchin wants to get the GSEs out of the government's hands, but it's still not clear how any privatization would work, say KBW's Bose George and Eric Hagen.

Even in a best case scenario - with the stock being privatized with a 2.5% capital requirement - the capital need would "meaningfully dilute" the common shares' value, they say.

They still believe the most likely scenario is one in which the common has no value, and reiterate Underperform ratings and $1 price targets for both.

http://seekingalpha.com/news/3228608-kbw-bears-buying-surge-fannie-mae-freddie-mac