Fannie Mae, Freddie Mac Outperform Tesla Motors Inc, Netflix, Inc.

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Fannie Mae, Freddie Mac Outperform Tesla Motors Inc, Netflix, Inc.
By User:AgnosticPreachersKid (Own work) [<a href="http://creativecommons.org/licenses/by-sa/3.0">CC BY-SA 3.0</a>], <a href="https://commons.wikimedia.org/wiki/File%3AFannie_Mae_Headquarters.JPG">via Wikimedia Commons</a>

Shares of Tesla Motors Inc (NASDAQ:TSLA) and Netflix, Inc. (NASDAQ:NFLX) are on the rise yet again today, with the former increasing more than 2% and the latter rising more than 1%. But believe it or not, Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) have outperformed both of them—and not by just a little bit.

Fannie, Freddie rise more than 1,000%

Over the last 14 months, shares of Tesla Motors Inc (NASDAQ:TSLA) are up more than 635%, while Netflix, Inc. (NASDAQ:NFLX) has risen 386%. However, as a report posted on Yahoo! Finance notes, Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) shares have risen 1,724%, while and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) stock has increased 1,626 since Jan. 1, 2013.

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The big problem both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) are facing is the fact that they are now government-sponsored entities. The government created them to pump money into the mortgage markets, but then after the financial crisis, the Federal Housing Finance Agency put them into a conservatorship because U.S. taxpayers had to bail them out—to the tune of more than $187 billion since September 2008.

Fannie, Freddie turn profitable

At this point, both companies have paid more dividends out than the size of their bailouts, but because of their previous agreement, they can’t buy out the government’s stake. Shareholders like Fairholme Funds are fighting this, saying that the arrangement is unconstitutional. The firm’s chief Bruce Berkowitz has been attempting to buy them out for months, while the government attempts to wind them both down over the next four years.

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Other shareholders continue to say that the companies’ stocks are undervalued. And now there are allegations that the Federal Deposit Insurance Corporation (FDIC) is guilty of insider trading regarding shares of both Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC)

Needless to say, this is one saga that’s probably going to go on for quite some time.

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