Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Misconception about valuation?

This seems pretty clear to me but are some of you seeing this differently than me?

The GSEs have "x" valuation right now.
When the capital raise happens via SPO... that valuation is no longer "X". It is now "X" plus "Y amount of capital" that was raised.

The valuation has increased because all of the capital that the GSEs are now raising cannot be spent at vegas.

Normally with other IPOs sometimes with private equity... they will take the proceeds to pay themselves a chunk rather than keep it at the companies.

That is not the case here. They aren't allowed to use the capital for "other" reasons.


The capital raises are not 100% dilutive, it is also ADDITIVE in nature.