Fannie Mae Preferred S (FNMAS)

[rosen62]

In DeMarco's last presentation (thank you europegoodold) he continues to ask the government to end the conservatorship:

"It is vital to the long-term health of our country's housing and financial markets that Congress and the Administration seek to bring the conservatorships to a conclusion and to define the government’s role and requirements for housing finance in the future."

And you are right, the securities he speaks of are MBS issued by FF. I can't see why this raises hopes:

"As we prepare to transition to a new secondary mortgage market that will operate in a post-conservatorship world, we anticipate that Fannie and Freddie will maintain its own distinct securitization operations and continue to issue their own securities. And while Fannie Mae and Freddie Mac continue their respective corporate activities while in conservatorship, as Conservator, FHFA is thinking ahead to a secondary market with multiple firms competing to bring the capacity of global capital markets to finance individual mortgages around the country."

I believe he is saying the underlying structure and operations will remain (unknown if under the same 2 companies or one merged or another name) but that private capital will enter the market issuing additional securities competing with FF's own structure. And that is only his vision. A multiple participant market along with Fannie and Freddie (or whatever form/shape/color they take).

There is no hidden clue here that can be extrapolated to us. I think we are on the hands of Congress if we wish to see more than a buck. But Tsy can surprise us with a sudden AIG conversion of Srs and *this* may raise some hope. Except that in AIGs plan common equity got hit.