Fannie Mae (FNMA)

[Patswil]

) What Just Happened and Why? MC has always said that the time to capitalize the GSEs is when the “sun is shining.” I wholeheartedly agree, and that time is NOW. Hence, I’ve always believed that the long “retain/recap” thesis is fraught with danger.

A long thread worth looking at

Re: Fannie/Freddie-The Roadmap From Here. In this thread, I’m going to interpret 1) what just happened and why, 2) what it portends, 3) what confirmatory tells to look for on the way. All opinions my own, as I don my financial engineering hat once more…

— Michael Kao (@UrbanKaoboy) January 15, 2021