Fannie Mae-No Politics (FNMA)

[big-yank]

Points to consider on improving valuation of common shares beyond initial uptick from release:

1. As observed by others, relist on NYSE will create institutional action.

2. Rising interest rates in 2017 are favorable to GSE income line due to ARM's and hedging gains.

3. Rising home prices increase GSE revenue per contract. Favorable to topline.

4. Pressure from recapitalization eases with each year's income redirected from sweep back to reserves.

5. Fannie Mae's market share has actually risen since 2008.

A $12 S/P in 2017 could easily become a $20 S/P in 2018, and so forth.

It's all good!