FMCKN - Major Upside In CapWealth's Frannie Subpar Preferred Recapitalization Plan

Fannie Mae (FNMA) and Freddie Mac (FMCC) are two undercapitalized, countercyclical providers of liquidity that support equal opportunity affordable housing. The action plan here is to buy their publicly traded preferred stock and hold for about a year for triple-digit returns. Since September of last year, the companies have begun retaining capital as the Federal Housing Finance Agency ((FHFA)) and US Treasury have adopted a framework to get Fannie and Freddie out of conservatorship. A capital rule that was supposed to be done last year has been delayed and delayed and

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