It's been 4 and more years in the making. For the last 4+ years, F&F have been a monopoly. Every mortgage that F&F have purchased, and that is ~90% of the market, give-or-take, for the last 4 years are practically deep-fried gold, in terms of soundness, and they are now riding the swell of the inevitable.
Fannie also posted a record breaking single qtr earnings just a week or so ago.
They still have more DTAs to use, and then the question of un-used loss reserves. If they stay profitable, which is most likely, those reserves » REVERSE.
Two things holding them back:
1 the threat of some arbitrary political machination by us gov, namely gop driven, but the left is derpy on this, too. Nice to see bi-partisanship, lol.
2 terms of august 17th agreement do not allow for F&F to reduce debt principle, so that ~59 or so BUSD they just laid on the table is considered a dividend. Reversing loss reserves, giving money back they never spent? Dividend. Thankfully the press, even the WSJ, are using the phrase "net investment", so the financial media are keeping score. It's common knowledge that F&F are paying back like gang-busters, and the moment "net investment crosses into a profit for the us gov, shyt will get real interesting.
It is truly, in the words of the great Mbersimenko, a "hero or zero trade". Only now, zero got much more expensive. Myself, camaro, twenty cents, and der goober-meister devil himself, all got in well under a buck. But really, they could fall just as catastrophically as they rose.
If ya got 30k you were going to spend on hookers and blow anyhow, I'd say your money would be better spent on f&f, but otherwise, well, no angels have been seen treading the shark infested waters of the F&F saga.
Little devils, if/when you see this, please email me at ace_of_wands at yahoo etc, thx boss.
