Core Viewpoint - Freddie Mac is experiencing significant market performance, with potential privatization considerations from the Trump administration driving optimism in its stock value [1][2][7]. Company Overview - Freddie Mac, a government-sponsored enterprise based in McLean, Virginia, was established in 1970 and plays a crucial role in the U.S. housing finance system by purchasing home loans and converting them into mortgage-backed securities [4][5]. - The organization supports both single-family and multi-family housing sectors, collaborating with financial institutions to maintain market liquidity [5][6]. Financial Performance - Freddie Mac has a market capitalization of $8.7 billion and is currently viewed as relatively undervalued, with a price-to-sales ratio of 0.07, significantly lower than the industry average [5][8]. - Over the past 52 weeks, Freddie Mac's stock has surged by 947%, reaching a 52-week high of $14.99 on September 12, although it has since declined by 13% from that peak. Year-to-date, the stock has increased by 297% [7]. Market Sentiment - Deutsche Bank has initiated coverage on Freddie Mac with a "Buy" rating and a price target of $25, indicating that the business is now considered de-risked and generating returns [3].

Fannie and Freddie Management & Privatization - Current management structure lacks independence from a board standpoint [1] - Market acceptance of Fannie and Freddie remaining in conservatorship hinges on management changes [1] - Privatization requires government to sell down its shareholdings over time [1] - Privatization structure needs to assure investors it's not a short-term gain for the US government [2] Guarantee & Housing Goals - Guarantee needs to remain in place in perpetuity to ensure investor confidence [2] - Fannie and Freddie need to pursue specific housing goals that the market believes in [2] Key Considerations for Privatization - Extent and timing of government share sales need to be determined [2] - Overall structure of privatization needs to be defined [2]

Group 1 - Scott Bessent, director of the Federal Housing Finance Agency, had a heated confrontation with Bill Pulte, reportedly threatening him during a social event in Washington, D.C. [5][6][9] - The altercation is part of ongoing tensions regarding the direction of federal mortgage giants Fannie Mae and Freddie Mac, with both Bessent and Pulte having differing views on the Federal Reserve's policies [7][8] - Bessent has advised President Trump against firing Federal Reserve Chairman Jerome Powell, while Pulte has called for a purge of central bankers, accusing Fed governor Lisa Cook of mortgage fraud [8][7] Group 2 - The confrontation between Bessent and Pulte was characterized by strong language, with Bessent reportedly saying, "Why the f— are you talking to the president about me? F— you," and threatening physical violence [5][4] - This incident follows a previous altercation involving Bessent and Elon Musk, indicating a pattern of conflict within the Trump administration regarding key appointments and policies [11][13] - The Executive Branch social club, where the incident occurred, is a high-profile venue that has attracted significant financial contributions from its founding members, including $500,000 from each [5]

Oman India Fertiliser has started early preparations for a potential listing in Muscat, marking a renewed push by the sultanate to privatize companies and deepen its capital markets https://t.co/cw5ExulKHM ...

Finland is considering an IPO of Posti on the Helsinki stock exchange as soon as this year, according to sources, kicking off a long-touted privatization of the country’s postal service https://t.co/iMloDlyM7S ...

Saudi billionaire Prince Alwaleed bin Talal is in talks with the Public Investment Fund to acquire a piece of Al Hilal Football Club in what would mark one of the most high-profile privatization efforts in the kingdom’s football sector. https://t.co/MEre0Sqps4 ...

Freeberg, you think that we should What do you do with the mortgage market. You >> God, it's so difficult. I don't know.>> Do you just basically privatize Freddy and Fanny and let them underwrite. >> I 100% think you got to privatize Freddy and Fanny as a first step. >> And then you have to stop underwriting student debt so that you don't underwrite the $200,000 degrees.>> I believe 100% in ending the federal student loan program. And I think that it will force a restructuring of the of the entire higher ed ...

Market Trends - Oman's stock market has shown signs of recovery in recent months [1] - This resurgence has increased investor anticipation regarding Oman's privatization program [1] Privatization Program - The privatization program aims to revitalize the market after previous IPOs failed to meet expectations [1]

Market Trends & Investment Landscape - Single-family home rentals are on the rise due to increasing difficulty in homeownership for average Americans [1] - Smaller investors are stepping in to buy single-family homes, comprising about 25% of purchases in the first half of the year, while large investors account for only about 5% [1] - Investors purchased nearly 1/3 of homes sold in Miami in Q4 2022, and about 1/4 in Atlanta; in California, investors own more than 50% of homes in 5 counties [1] Affordability & Housing Market Imbalance - High interest rates and economic uncertainty constrain the affordability index, making it difficult for the average American to afford housing [1] - In Nevada, the average income of around $50,000 is insufficient to afford a house, with older homes selling for around $350,000 and new homes around $450,000 [1] - Institutional investors' market share in residential real estate in Nevada is up 8 percentage points in 3 years, reaching 27% of the Vegas market [1] Policy & Potential Risks - Legislation to cap investor-owned homes at 100 failed, raising concerns about balancing wealth expansion and potential greed [1][2] - Privatization of Fannie Mae and Freddie Mac could introduce uncertainty and risk to the US mortgage market, valued at $14 trillion, without careful analysis [5][6][7] - Changes in Fannie and Freddie policies in 2023 have made loan-to-value ratios identical for investors and owner-occupiers [4]

Core Viewpoint - The Trump administration is planning significant IPOs for Fannie Mae and Freddie Mac, potentially valuing them at a combined $500 billion, which could raise about $30 billion for the federal government [1][2]. Group 1: IPO Plans and Government Involvement - The administration is finalizing plans to sell 5% to 15% of each company, with the Treasury considering various strategies for share release [1][2]. - President Trump has expressed his intention to proceed with the IPOs while maintaining the implicit government guarantees for the GSEs [2]. - Wall Street firms like JPMorgan, Goldman Sachs, Citigroup, and Bank of America are advising on the pricing and structure of the IPOs [2]. Group 2: Historical Context and Financial Performance - Fannie Mae and Freddie Mac were established to support mortgage credit but faced significant challenges during the 2008 financial crisis, leading to a $187 billion Treasury bailout [3]. - Since then, both GSEs have returned to profitability, with Fannie Mae's equity growing to $94.7 billion and Freddie Mac's to $59.6 billion by the end of 2024 [4]. Group 3: Implications of Privatization - Experts emphasize the importance of retaining the federal guarantee post-IPO to avoid increased funding costs and reduced credit access [5]. - A $30 billion stock sale would only represent 1.6% of the projected $1.9 trillion deficit for the current fiscal year, with the government likely retaining 85% to 95% ownership post-IPO [5]. Group 4: Potential Benefits for Investors - Hedge fund managers like Bill Ackman, who have invested heavily in Fannie and Freddie, could see substantial returns if the IPOs succeed [6][7]. - Wall Street underwriters are expected to earn significant advisory fees from the IPO process, benefiting from their roles as top originators for the GSEs [8]. Group 5: Challenges Ahead - The planned IPOs are among the most ambitious privatizations in U.S. history, occurring during a housing affordability crisis, which poses risks to investor confidence and financial stability [9].