Fnma vs fmcc

[ron...@comcast.net]

Strange movement today relative to each other.

[seysmont]

Complete parity. The most expensive preferred is FNMAT, which is first payment under liquidation.Coupon premiums wiped out. 

[joseph s]

Common getting dumped. High volume sell off in fnma

[miket...@gmail.com]

Ya but zero move on fmcc. Even saw green

[Duncan Macleod "Beta"]

Seysmont- 

how does the waterfall pay pfds?  or rather is there an order. fnmat then fn---, Last in first out? 

i would have thought all jr pfs were all the same equity class, so by weight if there was not enough to go around.  50% on the dollare for all jrs. if only half of total Redemption Value available for that class? as opposed to the FIFO or LIFO 

[Wayne Z]

Fnma closed below Fmcc.  There was no reason for Fannie to be priced higher than Freddie.  Freddie is healthier.  The Fannie premium is just name recognition and popularity.  Today is an eye opener for me.  WOW.

[miket...@gmail.com]

I have always had that concensus. Believe ive said this before but wasnt precrisis Freddie the big dog if I remember correctly. Fannie was in the trailing position.

[joseph s]

FNMA vs FMCC is all about earnings per share.

FNMA has more earnings so should be more.

[seysmont]

I've read the prospectus a very long time ago. FNMAT has advantages in a receivership ahead of other classes. I don't remember the details, but when they talk of receivership this series gets more expensive.

[Wayne Z]

Fmcc eps is .9 vs fnma eps of .56.

[littlede...@gmail.com]

Fannie is the larger company. Freddie is the more healthy company. Fannie have the more updated platform. Freddie is run more efficiently. Fannie have more revenues but Freddie have less expenses...at da end....dey are da same....da devil prefers freddie over fannie but dinks at da end, der will be parity....c=c, 25s=25s, 50s=50s, other demoninations will show a parity reflection in a conversion.....go figure....devil

[ron...@comcast.net]

Joseph,

Fannie has about 64% more shares than Freddie. Freddie’s eps is better

[joseph s]

Before conservatorship, Fannie had better eps.

I guess you just buy what you think is better.

Not a recco

[ron...@comcast.net]

“FNMA has more earnings so should be more.”

That’s the non sequitur given the vast difference in outstanding shares.

[Duncan Macleod "Beta"]

Thank you seysmont

[Wayne Z]

People are really respecting the valuation of the company now.  FNMA is at 1.28 and FMCC is at 1.30.  WOW.  All these years we saw Fannie pps higher than Freddie's.  Now, it is correcting.  Is this the reality LD is talking about?  

On Friday, May 11, 2018 at 6:33:30 AM UTC-5, Duncan Macleod "Beta" wrote:

Thank you seysmont

[seysmont]

Relative pricing gets much saner than before. Still there are outliers, but not as bad as before. It's a depressed pricing but a pricing of some sort. It used to be completely insane. 

[ron...@comcast.net]

Something else going on here other than EPS and multiples. This decoupling of the twins is curious given the volume.

[littlede...@gmail.com]

I agree Ron.  something is up.  the pps are falling all around with commons getting hit hard esp fnma.  I sure hope it is not one of those Lamberth events where insiders are unloading and we are left her guessing until its too late.....if i am to think the worst, I think we lost a major court case or NWS case for us could be practically dead.  That would be my GUESS.  if its r ship, we would have tanked further. to near 0 for both Ps and Cs....so r ship is out.........it have to be an event which is detrimental to us but leave us with still some hope....that is why pps for preferredfs are stillholding up but declining.....I am going to guess the worst is yet to come and we lost a major NWS case......Its all guesses...that is the story forming in da devil's pea brain head while assessing da market moves lately.....god forbid there is no news!!!!....go figure...devil

[littlede...@gmail.com]

All of a sudden after all these years, goobers are beginning to recognize Freddie is healther?  why now?  why? red flag...maybe its not a red flag...it can be just waking up....but der is a steady decline with heavier volume as of late........hmmmmm....why?  why now?......nearing end?...something else?.......go figure...devil

[miket...@gmail.com]

Devil went plain English 8^) wow. Things really are flippin

[littlede...@gmail.com]

Hehehaha...just curious...did da goober see fnma correction coming? Dat caught da devil off guard but da devil was not surprised as its reasonable as fnf is healthier...but da correction did catch da momo club off guard....go figure....devil

[littlede...@gmail.com]

The bid on fmcc L2 shows lopsided vs ask. For fnma ask is more almost 3/4 more.....go figure....devil

[Jeff Wood]

Big swing today, fnma big gains on fmcc. Anyone know why?

[littlede...@gmail.com]

Commons are commons...25s are 25s....50s are 50s....and divies are only valued by fools....go figure....2-25....oh wait...re figure...go figure....devil

[ron...@comcast.net]

“Big swing today, fnma big gains on fmcc. Anyone know why?”

I know. I know. More people are selling fmcc today. More people are buying fnma today. :)

[feralcomprehension]

What, are ya NEW here?

Don't look for logic :)

[Jeff Wood]

But this is an unusual swing on heavier volume than normal. Something is up, and it's not fmcc. It's OK by me; I switched all my commons to fnma a while back. I'd love to see fmcc get about 10c below fnma. I'll switch again. Just wondering if anyone on the board heard a rumor or something.

[ron...@comcast.net]

Cammy and Cat are bailing.

[joseph s]

Yeah? Ackman switching more to preferred?

[ron...@comcast.net]

Commons are a steal.

[Mike SP]

COMMONS are such a steal that you might have to spend some jail time if you buy...but it'll be worth it...$7 on the horizon

On Monday, July 30, 2018 at 12:20:02 PM UTC-7, XXX wrote:

Commons are a steal.

[joseph s]

If you keep travelling toward the horizon, I am sure that you will find it.

Over 9 years ago, I bought FMCC 50 dollar redemption preferred shares.

We shall see.

Not a recco

[neo]

.... back to parity or just more parody? ... continually feeling like Dr. Burry at his worst moments... destination redemption & vindication ...

[littlede...@gmail.com]

Ps for freddie is pretty much even. A little pressure on fannie preferreds but no volume.

Commons good volume but no movement....dont know vat to dink.....good solid volume doh....someone exited but strong support at dese lvls...tells da devil 1.55ish is da new battle line???...to early to tell...volume is just one day....go figure....devil

[ron...@comcast.net]

I’m liking the strength. Little or no profit taking. Looking for buying into the close. We’ll see.

[littlede...@gmail.com]

Hmmmm....fnf is a hold now...not a buy yet goober...go figure...devil

[ron...@comcast.net]

I’m holding. Was hoping others are buying. :)

[littlede...@gmail.com]

Value RONALD. remember....value....fnf will have da same outcome....value Ronald mez goober friend... go figure...devik