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burlingame

04/06/25 9:52 AM

#824957 RE: kthomp19 #823071

kthomp19 - what are your thoughts on Michael Kao's thesis that SPS have become the fulcrum security, given that by the time the GSEs exit, SPS will amount to more than the entire market cap of the GSEs? As he argued, the standard recap playbook is to offer special deals to junior security holders that require them to pay up 1:1 in order to partake in recap.