The apocalypse foreseen by Hensarling and others is not inevitable. If the goal is to preserve affordable home ownership and rental housing access, the best course of action would be to end of the conservatorship, lock in significant reforms implemented under Watt, and suspend the Net Worth Sweep. Hensarling is correct. The Housing and Economic Recovery Act gives FHFA ample authority to do just that. In doing so, FHFA might actually hew fairly closely to Mnuchin’s “starting points” for GSE reform – protecting taxpayers, preserving the 30-year mortgage, and maintaining affordable housing access.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More