Replies to post #763680 on Fannie Mae-No Politics (FNMA)

[kthomp19]

The time looks pretty ripe for a short FNMA/long FMCC pair trade.

Too bad I didn't pull the trigger on this one. It made no sense for FNMA to trade that far above FMCC. Oh well, c'est la vie.

The spread is still almost 7% but I could see that persisting for a while.

Of course, just shorting FNMA would have been better in hindsight but also far riskier without that benefit.