Fannie Mae-No Politics (FNMA)

[big-yank]

Obviously someone needs to help you understand the difference between MBS and the mReits that gobble them up. Fannie packages them. mReits like NLY, AGNC and others scoop them up. Then the mReits make money when their borrowing cost is less than what they pay for the coupon rates in the mortgage basket.

Why do you say with apparent conviction that FNMA securities held in a market sell off, or quote sources that say the same thing? All bonds tend to hold up in a flat interest rate market as has been the recent norm. Then they go down if rates rise, making the old bonds less attractive than new bonds with higher coupon rates.

Glad I could clear that up for you.