Fannie Mae-No Politics (FNMA)

[capitalismforever]

Thanks. I've spoken to him several times. I'm an accountant. I know what a derivative is and how to read a 10-K. Thanks. Lol.

When derivatives are the reason for your DTA buildup over a period of several years, you're not hedging risk, you're creating it. I've never needed a derivative to "hedge" a risk. I find the idea to be illogical, as most value investors do.

Risk is the difference between what you pay and what it's worth. If you're wrong about either, no amount of hedging is going to save you.