Fannie Mae-No Politics (FNMA)

[Jreinhold]

Why'd you pick 17 p/e ratio?


Are we treating FNMA and FMCC as bank stocks or insurance agencies?


Bank stocks tend to be within 12-16 (Citigroup, BAC, WFC, JPM)

While insurance agencies tend to be less predictable.


If this is treated like a bank stock you can see that with the implied risk 8-12 p/e ratio is where it'll end up being.