tag:blogger.com,1999:blog-30643134.post5621486401872618396..comments2023-12-26T01:10:26.319-05:00Comments on Accrued Interest: Rumor of the dayAccrued Interesthttp://www.blogger.com/profile/05096191765979971184noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-30643134.post-70246784740141560102008-07-08T09:56:00.000-05:002008-07-08T09:56:00.000-05:00You can't know what will happen to subordinate sec...You can't know what will happen to subordinate securities should there be a government bailout. And the odds of such a bailout are relatively high. <BR/><BR/>If you want to take a flyer on FRE/FNM, I'd just buy the common. If the GSE's can pull through, you are looking at huge increases in the stock price. I wouldn't do it personally, but I think that's a better call than the converts.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-10296279108081058092008-07-07T20:35:00.000-05:002008-07-07T20:35:00.000-05:00What do you think about the Fannie Mae Preferreds ...What do you think about the Fannie Mae Preferreds (FNA) that were issued in May. It is at 33 converts in to. 1.5 shares of Fannie andhas an almost 30% yield. Is this a buy?Nuttzhttps://www.blogger.com/profile/00483722365570894447noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-62462277860126014092008-07-07T14:26:00.000-05:002008-07-07T14:26:00.000-05:00Not that I'd be surprised if Radian went BK, but R...Not that I'd be surprised if Radian went BK, but RDN stock is up sharply today. <BR/><BR/>I have a feeling there are some unsubstantiated rumors floating around that go beyond what I'm hearing. As I'm writing this, the S&P has cut their loss in half in about 20 mins. Which smells an awful like rumor trading. <BR/><BR/>Anyway, right now I'm letting the market rally before resetting my shorts. No need to be a hero and chase it all the way to the bottom.Accrued Interesthttps://www.blogger.com/profile/05096191765979971184noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-56496956054634847792008-07-07T14:23:00.000-05:002008-07-07T14:23:00.000-05:00I think it's the Fannie and Freddie issue... altho...I think it's the Fannie and Freddie issue... although you say that the report came out earlier in the day, FNM and FRE only started plunging around noon.<BR/><BR/>Again, accountants being dumb. On top of their push for mark-to-market during stressful times, now they expect Fannie and Freddie to raise $40+ billion? Of course this makes no sense to anyone except an accountant who probably knows a lot of numbers but don't know what they mean in the markets. <BR/><BR/>The Bloomberg article says an exception will be granted but that makes it even worse. Then you will have some companies using the rule while some don't (I guess if your goal is to create confusion and increase uncertainty then that's a great idea.) They should seriously re-think all this new regulation and rule changes in the thick of a big credit crisis.Sivaram Vhttps://www.blogger.com/profile/06361276466660862882noreply@blogger.comtag:blogger.com,1999:blog-30643134.post-49298398391392232972008-07-07T14:19:00.000-05:002008-07-07T14:19:00.000-05:00Also hearing that Radian may go into runoff. This...Also hearing that Radian may go into runoff. This would really hurt the equity of the GSEs as they have massive exposure to the MIs.<BR/>Also losses keep climbing and the massive guaranateed portfolios just look like they have losses possibly far inexcess of the 21bps in fees/year that they have been earning.wagner2626https://www.blogger.com/profile/06301000023503613339noreply@blogger.com