Yesterday, I noticed 20M in after hours volume on $FNMA and 11M for $FMCC. This seems highly unusual considering the full day’s volume (before the after hours trade) for $FNMA was only 18M.
With a pending decision from SCOTUS in Collins, this seems correlated, but I’m speculating. There is other recent news here as well though... the government filed a motion to dismiss all derivative shareholder suits in the Fairholme suit.
Bill Ackman has also chimed in with his opinion on these being undervalued. With housing booming, profits soaring, and just underlying basic need for the GSEs, I’m curious what will happen if/when SCOTUS issues a favorable ruling within the next 100 days.
Are these forever foresaken or is there upside here? If you’ve been following the GSE saga, what are your thoughts?
Submitted January 28, 2021 at 10:44PM by goodwill-blunting https://ift.tt/3qTDFoK
