Fannie Mae-No Politics (FNMA)

[bradford86]

No real liquidity. The discount to the other jps is not that great. It is hard to buy— not just placing orders — i have to waste like 30 minutes calling the debt securities specialist over at schwab and have him place the order and since it is illiquid and there isnt really an otc bid/ask — it is really kind of a gray market security. That is the problem i have. I would buy more if someone wanted to do a block trade at a discount to what i could sell my other jps for. But i am not a big player. The prices of these jps have gone materially down since i started only owning them basically. Does not really translate well into winning. So far, like berkowitz, this trade for me has been realized and unrealized losses for the better part of a decade and this past week is no different.

When this plays through it will be fine. The question is when. Berkowitz could no longer confidently solve for that and the courts arguably are a tragedy— which was his main route