Fannie Mae (FNMA)

[contrarian bull]

Anyone have an idea why Fannie and Freddie have almost reached parity?

I have heard some rumors that Freddie may give an upward earnings surprise this quarter. If it posts relatively better earnings than Fannie, then it would rise faster. One can only assume the insiders already know and are reacting to that news.

One might ask why earnings matter if the Treasury takes them all - but the assumption is that at some point in the distant future F&F will be released and at that point earnings will matter.