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FHLB $3B, 2-Yr Global Sold At 3.394% Yld, +138 BPS Over Tsys
09/24 02:59 PM
(MORE TO FOLLOW) Dow Jones Newswires
09-24-081459ET
Copyright (c) 2008 Dow Jones & Company, Inc.
For his "charitable trust", maybe? I don't care personally, I am just glad to see somebody with a one hour show on CNBC finally say to buy FRE/FNM. I am sure Cramer has alot of followers. It is good to hear, IMO.
No way, that must mean he is done buying, LOL...
Especially if Congress keeps farting around...
Freddie, Fannie Pay More To Raise New Short-Term Debt
09/24 12:12 PM
NEW YORK (Dow Jones)--Yields on newly issued Fannie Mae (FNM:$1.89,00$0.58,0044.27%) and Freddie Mac (FRE:$1.97,00$0.65,0049.24%) short-term bills skyrocketed Wednesday as investors demanded much higher risk premiums to compensate for sharp swings in short-term credit markets.
Fannie sold $1 billion of three-month bills at a yield of 2.972%, 0.84 percentage point higher than the 2.131% yield it paid last week at an auction of similar bills.
The housing giant sold $1 billion of six-month bills at a yield of 3.459%, 0.82 percentage point over the 2.635% yield Fannie paid last week for bills of this maturity.
"The short-term funding market appears to be in disarray," said Jim Vogel, senior vice president on the FTN Financial.
Freddie, which completed its $2 billion short-term bills auction Monday at more favorable terms than Fannie, felt the impact of the market dislocation Wednesday when it sold the same amount in one-month bills.
Freddie paid a yield of 2.655%, a 37-basis-point increase from last month's yield on similar bills.
Some market participants felt falling Treasury yields have largely contributed to the higher financing costs the mortgage companies had to pay.
"The flight-to-quality bid to Treasurys has sidelined traditional investors in agency paper," said Margaret Kerins, managing director and head of agency strategy at RBS Greenwich in Chicago.
The higher yields agency bills were driven by outsized risk premiums investors demanded. For instance, Fannie's $1 billion in three-month bills sold at 252 basis points over comparative Treasury yields.
This is in stark contrast to the less than 100-basis-points over Treasury yields these bills had priced in recent months.
Similarly, risk premiums on Fannie's six-month bills widened to 188 basis points and Freddie's one-month bills stretched to 248 basis points over comparative Treasury yields that had dipped to 0.17%.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=PJeHmS4lRrSS53ZpCwJJZg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
09-24-081212ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Freddie, Fannie Pay More To Raise New Short-Term Debt
09/24 12:12 PM
NEW YORK (Dow Jones)--Yields on newly issued Fannie Mae (FNM:$1.89,00$0.58,0044.27%) and Freddie Mac (FRE:$1.97,00$0.65,0049.24%) short-term bills skyrocketed Wednesday as investors demanded much higher risk premiums to compensate for sharp swings in short-term credit markets.
Fannie sold $1 billion of three-month bills at a yield of 2.972%, 0.84 percentage point higher than the 2.131% yield it paid last week at an auction of similar bills.
The housing giant sold $1 billion of six-month bills at a yield of 3.459%, 0.82 percentage point over the 2.635% yield Fannie paid last week for bills of this maturity.
"The short-term funding market appears to be in disarray," said Jim Vogel, senior vice president on the FTN Financial.
Freddie, which completed its $2 billion short-term bills auction Monday at more favorable terms than Fannie, felt the impact of the market dislocation Wednesday when it sold the same amount in one-month bills.
Freddie paid a yield of 2.655%, a 37-basis-point increase from last month's yield on similar bills.
Some market participants felt falling Treasury yields have largely contributed to the higher financing costs the mortgage companies had to pay.
"The flight-to-quality bid to Treasurys has sidelined traditional investors in agency paper," said Margaret Kerins, managing director and head of agency strategy at RBS Greenwich in Chicago.
The higher yields agency bills were driven by outsized risk premiums investors demanded. For instance, Fannie's $1 billion in three-month bills sold at 252 basis points over comparative Treasury yields.
This is in stark contrast to the less than 100-basis-points over Treasury yields these bills had priced in recent months.
Similarly, risk premiums on Fannie's six-month bills widened to 188 basis points and Freddie's one-month bills stretched to 248 basis points over comparative Treasury yields that had dipped to 0.17%.
-By Prabha Natarajan, Dow Jones Newswires; 201-938-5071; prabha.natarajan@ dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=PJeHmS4lRrSS53ZpCwJJZg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
09-24-081212ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Supply and demand, Jerry. Supply and demand...
Fannie, Freddie Jump 30% After Sale of $2 Billion in Bills
09/24 10:33 AM Eastern Daylight Time, 09/24/2008 (MidnightTrader) -- Fannie Mae (FNM:$1.7799,$0.4699,35.87%) and Freddie Mac (FRE:$1.8300,$0.5100,38.64%) are up more than 30% each in early trading after Fannie sold sold $2 billion in bills, although at higher interest rates compared with sales of the same maturities a week ago.
Fannie Mae (FNM:$1.7799,$0.4699,35.87%) said it sold $1 billion of three-month benchmark bills due Dec. 24, 2008 at a stop-out rate, or lowest accepted rate, of 2.950% and $1 billion of six-month bills due March 25, 2009 at a 3.4% stop-out rate.
The three-month bills were priced at 99.254 and have a money market yield of 2.972%, while the six-month bills were priced at 98.281 and have a money market yield of 3.459%, according to Fannie Mae (FNM:$1.7799,$0.4699,35.87%) .
Freddie Mac (FRE:$1.8300,$0.5100,38.64%) is up 35.6% at $1.79.
Price: 1.77, Change: +0.47, Percent Change: +35.88
http://www.midnighttrader.com
Fannie, Freddie Jump 30% After Sale of $2 Billion in Bills
09/24 10:33 AM Eastern Daylight Time, 09/24/2008 (MidnightTrader) -- Fannie Mae (FNM:$1.7799,$0.4699,35.87%) and Freddie Mac (FRE:$1.8300,$0.5100,38.64%) are up more than 30% each in early trading after Fannie sold sold $2 billion in bills, although at higher interest rates compared with sales of the same maturities a week ago.
Fannie Mae (FNM:$1.7799,$0.4699,35.87%) said it sold $1 billion of three-month benchmark bills due Dec. 24, 2008 at a stop-out rate, or lowest accepted rate, of 2.950% and $1 billion of six-month bills due March 25, 2009 at a 3.4% stop-out rate.
The three-month bills were priced at 99.254 and have a money market yield of 2.972%, while the six-month bills were priced at 98.281 and have a money market yield of 3.459%, according to Fannie Mae (FNM:$1.7799,$0.4699,35.87%) .
Freddie Mac (FRE:$1.8300,$0.5100,38.64%) is up 35.6% at $1.79.
Price: 1.77, Change: +0.47, Percent Change: +35.88
http://www.midnighttrader.com
Massive Dollar Volume
Yesterday he looked a a deer in the headlites. He doesn't feel 'safe in the stock market, buy gold', hee hee...
http://www.fhlb-of.com/products/discountnotes.html
Discount Notes
Investor demand for short-term securities (one year or less) may be met through the FHLBanks' Discount Note Programs. All FHLBank DNs earn the highest credit ratings from both Moody's and S&P (P-1/A-1+), and all are exempt from state and local income tax for domestic investors. FHLBank DNs are characterized by competitive rates, efficient trade execution, and responsiveness to reverse inquiries.
The FHLBank System has long been the GSE leader in discount note issuance. In 2008, term DN issuance will likely exceed $2,500 billion. Overnight DN issuance has been averaging about $40 billion per day. The flexibility of FHLBank issuance practices allows nearly continuous opportunity for investors to obtain the right maturity at the right price, at the right time.
In January 2000, the System shifted its DN auctions to an internet-based platform. This change was intended to eliminate some manual intervention and redundancies that had previously existed, particularly in the bidding and awards process. The change was so successful that the DN Selling Group was expanded just three weeks after inception. During 2002, the DN Window was also migrated to the web. This has further enhanced the Program by providing the FHLBank Reallowance Group direct, interactive access to window offerings. These are two examples of how the FHLBank System seeks to improve liquidity and transparency in the agency debt market.
Rates and Maturities
Discount notes are available in maturities of one year or less, with the largest volume in the one- to 60-day range. Rates and maturity categories for both window and auctioned discount notes are set frequently and announced publicly on Telerate and through other major wire services. This information is also posted in real-time in the Securities Issuance section of this web site. DNs are priced at a discount using the actual number of days to maturity divided by 360. Upon maturity, the par value of the note is paid in full.
Purchase
Discount notes may be offered into the market through the window, or through regularly scheduled competitive auctions. DNs included through the window are priced daily and distributed through a 16 member (currently) Selling Group and a 70+ member Reallowance Group of FHLBank underwriters.
DNs are auctioned twice weekly, on Tuesdays and Thursdays, to the selling group members. Four standard maturities are available: 4-, 9-, 13-, and 26-weeks. Over 85 percent of DN maturities 25 days and longer are sold in this manner. At the majority of these auctions, these four maturities are available, generally in sizes from $500 million to over $5 billion each. The Office of Finance is responsive to reverse inquiry; dealers interested in specific dollar volume and/or maturities should contact the OF. Also, investors interested in FHLBank discount notes should contact their financial services provider. The size and variety of DNs (and bonds) available for sale is dependent on the FHLBanks' funding needs on a given day. FHLBank DNs are sold subject to a minimum of $100,000 and $1,000 increments. After issuance, DNs can be traded in the secondary market through securities dealers and banks.
Settlement and Delivery
Discount notes are generally available with same day, next business day, and two or more business day settlement, referred to as cash, regular, skip and skip plus, respectively. Settlement is in immediately available funds. DNs are issued in the U.S. only in book-entry form and are transferred through the Fedwire.
Disclosure
Discount note offerings are subject to the FHLBank Offering Circular for Consolidated Bonds and Consolidated Discount Notes, and as supplemented from time to time. The dealer should provide these documents to investors prior to or at settlement. They can be obtained in the Details and Documentation section of this web site.
UPDATE: Fed Announces It Will Buy Agency Discount Notes Tue 09/23 02:26 PM
By Min Zeng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The Federal Reserve of New York said Tuesday it will buy back agency discount notes with maturities ranging from October 2008 to July 2009.
The Fed's outright purchase Tuesday will close at 2:30 p.m. EDT (1830 GMT) and the settlement date is Wednesday.
In such a buyback, the Fed permanently purchases the securities from the market.
This action is part the central banks newly announced initiative to purchase short-term debt issued by Fannie Mae (FNM:$1.28,00$0.49,0062.03%) , Freddie Mac (FRE:$1.30,00$0.4500,52.94%) and the Federal Home Loan Banks in an effort to bring greater liquidity to credit markets.
On Friday, the New York Fed bought $8 billion in its inaugural agency discount note purchase auction.
-By Min Zeng, Dow Jones Newswires; 201-938-2096; min.zeng@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=mxZ09luYJZP8Iqr2QrN8MA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
09-23-081426ET
Copyright (c) 2008 Dow Jones & Company, Inc.
UPDATE: Fed Announces It Will Buy Agency Discount Notes Tue 09/23 02:26 PM
By Min Zeng
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--The Federal Reserve of New York said Tuesday it will buy back agency discount notes with maturities ranging from October 2008 to July 2009.
The Fed's outright purchase Tuesday will close at 2:30 p.m. EDT (1830 GMT) and the settlement date is Wednesday.
In such a buyback, the Fed permanently purchases the securities from the market.
This action is part the central banks newly announced initiative to purchase short-term debt issued by Fannie Mae (FNM:$1.28,00$0.49,0062.03%) , Freddie Mac (FRE:$1.30,00$0.4500,52.94%) and the Federal Home Loan Banks in an effort to bring greater liquidity to credit markets.
On Friday, the New York Fed bought $8 billion in its inaugural agency discount note purchase auction.
-By Min Zeng, Dow Jones Newswires; 201-938-2096; min.zeng@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http:// www.djnewsplus.com/al?rnd=mxZ09luYJZP8Iqr2QrN8MA%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
09-23-081426ET
Copyright (c) 2008 Dow Jones & Company, Inc.
U.S. agency 2008 note sales calendar
09/23 01:47 PM
Sept 23 (Reuters) - The following are the sales schedules for Fannie Mae (FNM:$1.2100,$0.4200,53.16%)
benchmark notes and Freddie Mac (FRE:$1.2300,$0.3800,44.71%) reference notes in 2008.
Debt issued by the Federal Home Loan Banks is not sold based on a preset
calendar, and offerings will be added as they are announced.
In addition to these offerings, Freddie Mac (FRE:$1.2300,$0.3800,44.71%) and Fannie Mae (FNM:$1.2100,$0.4200,53.16%) sell bills each
week [N07164318].
*Issue has been priced
AGENCY TYPE OF DEBT AMOUNT ANNOUNCEMENT/PRICING SETTLEMENT
SEPTEMBER:
FHLB 2-yr notes $3 bln min SEPT 23/NA NA
OCTOBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Oct 8/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Oct 20/NA NA
NOVEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Nov 4/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Nov 17/NA NA
DECEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Dec 1/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Dec 8/NA NA
-- Fannie Mae (FNM:$1.2100,$0.4200,53.16%) will state the specific maturity and size of the offerings on
announcement dates. Fannie Mae (FNM:$1.2100,$0.4200,53.16%) also may opt to skip issuance.
-- The minimum issue size for new Fannie Mae (FNM:$1.2100,$0.4200,53.16%) 2-, 3-, 5- 10-year notes is $3
billion. Fannie Mae (FNM:$1.2100,$0.4200,53.16%) said benchmark note sales are expected to price within 3
business days of the announcement date and will generally settle 2 business
days after the pricing of the issue.
-- Freddie Mac (FRE:$1.2300,$0.3800,44.71%) will state the specific maturity and size of the offerings on
announcement dates.
-- The minimum size for Freddie Mac (FRE:$1.2300,$0.3800,44.71%) new 2-yr, 3-yr, 5-yr and 10-year note
offerings is $3 billion. There is no minimum size for a reopening. The minimum
size of new REMIC offerings is $1 billion.
NA = Announcement or settlement dates are unavailable.
U.S. agency 2008 note sales calendar
09/23 01:47 PM
Sept 23 (Reuters) - The following are the sales schedules for Fannie Mae (FNM:$1.2100,$0.4200,53.16%)
benchmark notes and Freddie Mac (FRE:$1.2300,$0.3800,44.71%) reference notes in 2008.
Debt issued by the Federal Home Loan Banks is not sold based on a preset
calendar, and offerings will be added as they are announced.
In addition to these offerings, Freddie Mac (FRE:$1.2300,$0.3800,44.71%) and Fannie Mae (FNM:$1.2100,$0.4200,53.16%) sell bills each
week [N07164318].
*Issue has been priced
AGENCY TYPE OF DEBT AMOUNT ANNOUNCEMENT/PRICING SETTLEMENT
SEPTEMBER:
FHLB 2-yr notes $3 bln min SEPT 23/NA NA
OCTOBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Oct 8/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Oct 20/NA NA
NOVEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Nov 4/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Nov 17/NA NA
DECEMBER:
Freddie Mac 2-,3-, 5-, 10-yr notes NA Dec 1/NA NA
Fannie Mae 2-,3-, 5-, 10-yr notes NA Dec 8/NA NA
-- Fannie Mae (FNM:$1.2100,$0.4200,53.16%) will state the specific maturity and size of the offerings on
announcement dates. Fannie Mae (FNM:$1.2100,$0.4200,53.16%) also may opt to skip issuance.
-- The minimum issue size for new Fannie Mae (FNM:$1.2100,$0.4200,53.16%) 2-, 3-, 5- 10-year notes is $3
billion. Fannie Mae (FNM:$1.2100,$0.4200,53.16%) said benchmark note sales are expected to price within 3
business days of the announcement date and will generally settle 2 business
days after the pricing of the issue.
-- Freddie Mac (FRE:$1.2300,$0.3800,44.71%) will state the specific maturity and size of the offerings on
announcement dates.
-- The minimum size for Freddie Mac (FRE:$1.2300,$0.3800,44.71%) new 2-yr, 3-yr, 5-yr and 10-year note
offerings is $3 billion. There is no minimum size for a reopening. The minimum
size of new REMIC offerings is $1 billion.
NA = Announcement or settlement dates are unavailable.
In a nutshell, it will take the bad debt off the books for both FMN/FRE.
Well I have equal amounts in both, so I am just gonna sit back and see who wins, LOL.
Both!
I think you will do just fine. GLTY!
FNM is doing great, but my FRE position is kicking its butt! I think FNM has some big days ahead, it has some catching up to do.(of course, it held its price better than FRE, so my average is higher, GLTA(except shorts)
True dat...
It is because she has integrity...
Folks are not waiting to buy today, over 10M spent in 10 minutes...
Wow, amazing volume...
Posted by: allchipin Date: Monday, September 22, 2008 8:49:31 PM
In reply to: None Post # of 3894
Important Notice: Due to the emergency order issued by the Securities Exchange Commission, short selling on certain financial securities is not permitted from September 19, 2008 through October 2, 2008. Short positions established in these securities on September 19, 2008 must be closed and any existing open orders to sell short these securities will need to be cancelled.
New Information for Options Customers: Due to the above new temporary SEC rule in short sales, opening new positions on "uncovered calls" and exercising "long puts" on certain financial securities are not permitted. This temporary measure, currently in effect through October 2, 2008, is a result of the above new rules since an assignment of an uncovered call and exercise of a long put would result in a short sale position. Please use caution not to open the above mentioned uncovered positions.
In observation of this emergency order Zecco Trading reserves the right to close-out any uncovered options position at any time at its discretion. Any financial result of this transaction will be the full responsibility of the customer. Again, please note that the above circumstances are a direct result of the recently imposed SEC regulation on short sales.
Zecco Trading
It's like a deam come true, GLTA!(except shorts)
After Hours: $ 0.95 0.10 (+11.76%) Volume: 699.27 k 7:35 PM EDT Sep 22, 2008
After Hours: $ 0.95 0.16 (+20.25%) Volume: 604.36 k 7:34 PM EDT Sep 22, 2008
After Hours: $ 0.89 0.10 (+12.66%) Volume: 388.56 k 6:00 PM EDT Sep 22, 2008
After Hours: $ 0.88 0.03 (+3.53%) Volume: 338.87 k 6:02 PM EDT Sep 22, 2008
.85X.85
AH .86X.89
That close was hogwash!
It will be alot easier to figure out the dollar volume...
Usually folks are talking about RSI.
Yup, way overbought, LOL...
Good luck with that!
Freddie sells bills at higher rates, bids steady-up
09/22 10:14 AM
NEW YORK, Sept 22 (Reuters) - Freddie Mac's (FRE:$0.7674,$0.2174,39.53%) $2 billion 2-part bill sale on Monday was sold at higher interest rates compared with the last week's sales of the same maturities, with demand steady to higher.
Freddie Mac (FRE:$0.7674,$0.2174,39.53%) sold $1 billion of three-month bills due Dec. 22, 2008 at a 2.450 percent rate, compared with a 2.100 percent rate for $1 billion of the same maturity bills sold on Sept. 15.
Demand was little changed from the $1 billion auction of the same maturity a week ago based on this week's bid-to-cover ratio of 2.92 compared with 2.98 a week ago.
Freddie Mac (FRE:$0.7674,$0.2174,39.53%) also sold $1 billion of six-month bills due March 23, 2009 at a 2.810 percent rate, versus a 2.350 percent rate for $2 billion sale of the same maturity last week.
Demand rose for this week's the six-month bills was higher than a week ago, with a bid-to-cover ratio of 2.10 versus 1.64 for last week's sale. (Reporting by Pam Niimi; Editing by Theodore d'Afflisio)
Lets not forget, that even if somebody never did business through FNM/FRE, if these two fail, what will the effect be to the prices of their houses? I shudder to think of it...Shorty picked on the wrong industry, IMO