Core Viewpoint - Billionaire hedge fund manager Bill Ackman is set to unveil a new proposal regarding Fannie Mae and Freddie Mac, which have been under federal conservatorship since the 2008 financial crisis [1] Group 1: Proposal Details - Ackman's plan aims to help the Trump administration achieve objectives such as maximizing taxpayer value, reducing mortgage spread risks, and allowing the U.S. Treasury to show a mark-to-market value for its holdings in Fannie Mae and Freddie Mac [2] - A livestream event is scheduled for November 18, where Ackman will detail the proposal, with the potential for the transaction to be completed by year-end [4] - Ackman clarified that Pershing Square has not sold its stake in Fannie Mae and Freddie Mac and remains the largest common shareholder with over 210 million shares combined [4] Group 2: Background on Fannie Mae and Freddie Mac - Fannie Mae and Freddie Mac are government-sponsored enterprises that play a crucial role in the U.S. housing-finance system by purchasing mortgages, bundling them into securities, and guaranteeing those securities for investors [8][9] - Together, they back or own approximately half of all U.S. residential mortgages, amounting to about $12 trillion in outstanding debt [11] - Both entities were placed under federal conservatorship in response to significant losses during the 2008 financial crisis [12] Group 3: Housing Market Context - Ackman's announcement coincides with the Trump administration's exploration of new housing affordability measures, including a proposed 50-year mortgage, despite concerns about increasing long-term debt for borrowers [15]

Group 1 - The article emphasizes a strong buy recommendation for Farmer Mac (AGM), indicating a positive outlook on the stock's performance [1] - The author highlights a focus on European small-cap investments, advocating for a balanced portfolio of dividend and growth stocks [1] - The investment group European Small Cap Ideas is mentioned as a source for exclusive research on European investment opportunities, particularly in the small-cap sector [1] Group 2 - The article notes that the author holds a beneficial long position in AGM shares, indicating personal investment confidence in the company [2] - The author also has long positions in Series F and Series G preferred shares, further demonstrating commitment to the investment [2]

Financial Data and Key Metrics Changes - The company reported a GAAP net loss attributed to common stockholders of $0.6 million or negative $0.01 per basic common share, which includes a benefit from credit losses of $1.6 million or $0.03 per basic common share [17] - Distributable loss for the quarter was $18.9 million or negative $0.40 per basic common share, including write-offs of $19.8 million or $0.42 per basic common share [17] - The book value as of September 30th was $7.94 per common share, a decline of $0.05 per share from Q2 [18] - The aggregate CECL reserve at September 30th was about $134 million, down from $155 million last quarter [18] - Total leverage decreased slightly from 2.1 times to 1.9 times [19] Business Line Data and Key Metrics Changes - The total loan portfolio commitments ended the third quarter at $1.8 billion, with an outstanding principal balance of $1.7 billion [11] - The realized loan portfolio yield for the third quarter was 7.5%, up from 7.1% in the prior quarter [11][12] - The weighted average risk rating of the portfolio held steady at 2.8 [11] Market Data and Key Metrics Changes - Investor sentiment improved through the third quarter, with increased confidence in deploying capital into the recovering commercial real estate market [5] - The commercial real estate market remains uneven, with the middle market loan segment being compelling for certain property types like multifamily and industrial [6] Company Strategy and Development Direction - The company plans to focus on loan repayments and asset resolutions while maintaining higher levels of liquidity, expecting to return to core lending and origination efforts in mid-2026 [9][16] - The company is actively repositioning REO assets and investing capital to maximize outcomes [7][16] Management's Comments on Operating Environment and Future Outlook - Management noted that while the re-liquidation of the commercial real estate market is underway, it remains uneven and bifurcated [6] - The company anticipates a longer resolution timeline for certain loans due to persistent local market challenges, but sees positive trends in the return to office mandates [15] Other Important Information - The company reduced the balance of its higher-cost secured credit facility by $7.5 million and extended the maturity to December 2026 [10] - The company had about $63 million of unrestricted cash at the end of the quarter [19] Q&A Session Summary Question: What are the company's plans for asset resolutions and growth? - Management emphasized the ongoing efforts to resolve assets and position for regrowth in 2026, highlighting the team's dedication to these plans [21]

Financial Data and Key Metrics Changes - The company reported GAAP net income of $0.29 per share and adjusted distributable earnings (ADE) of $0.53 per share, marking a new quarterly high for ADE since its introduction in 2022, significantly exceeding the $0.39 per share dividends for the quarter [5][11][20] - Total portfolio holdings grew by 12% during the quarter, driven by non-QM, proprietary reverse mortgage, and commercial mortgage bridge loans [7][20] - The economic return for the third quarter was 9.2% annualized, with book value per share at $13.40 [20] Business Line Data and Key Metrics Changes - In the credit portfolio, net interest income grew sequentially, with $0.42 per share from credit, $0.04 from agency, and $0.09 from Longbridge [11][12] - The Longbridge segment had strong contributions from both originations and servicing, with origination profits driven by higher volumes of proprietary reverse mortgage loans [14][15] - The adjusted long credit portfolio increased by 11% to 3.56% quarter over quarter, while the Longbridge portfolio increased by 37% to $750 million [15][17] Market Data and Key Metrics Changes - The company noted a favorable environment for agency RMBS due to lower interest rates and reduced volatility, which supported portfolio performance [13] - The securitization market has become more liquid and commoditized, attracting a larger universe of investor-grade bond buyers, which has tightened spreads [70] Company Strategy and Development Direction - The company is focusing on diversifying its funding sources and reducing reliance on short-term repo financing, as evidenced by the successful pricing of $400 million in senior unsecured notes [10][21] - There is an emphasis on technology investments to enhance loan origination efficiency and expand the range of products offered by affiliate loan originators [23][25] - The company plans to expand its footprint in the securitization markets and is optimistic about purchasing seasoned mortgage loan portfolios from banks [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential economic cracks, including recent corporate bankruptcies and weakened job formation, but remains focused on maintaining credit quality [21][22] - The company anticipates continued strong performance in the fourth quarter, with robust securitization activity and origination volume [29][30] - Management highlighted the importance of maintaining a disciplined risk management approach while pursuing high returns [32] Other Important Information - The company has seen a significant increase in securitization volumes, with 20 securitizations priced year to date, more than triple last year's pace [6][9] - The percentage of borrowings subject to mark-to-market margining declined to 61% from 74% month over month, indicating improved financing terms [19] Q&A Session Summary Question: Discussion on loan originator platforms and valuations - Management noted that strong earnings performance has driven higher book values and liquidity for loan originator platforms, leading to improved valuations [35][36] Question: Opportunities in buying loans from banks - Management confirmed that recent transactions involved residential mortgage loans from smaller banks, indicating a trend of banks restructuring portfolios due to lower yields [40][41] Question: Credit performance and allocation of capital - Management highlighted that credit performance remains strong, particularly among higher-end borrowers, while being cautious about potential impacts from layoffs in the labor market [46][47] Question: Longbridge portfolio and leverage - Management stated that Longbridge does not require more leverage to achieve target returns, as most equity is in high-yielding servicing [75] Question: Non-QM market and convexity risk - Management emphasized the importance of understanding prepayment risks and noted that the Non-QM market has become more liquid and attractive due to tighter spreads [77][81]

Earnings Conference Call Q3 2025 Q3 2025 EARNINGS November 6, 2025 Important Notice Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve numerous risks and uncertainties. Our actual results may differ from our beliefs, expectations, estimates, and projections and, consequently, you should not rely on these forward-looking statements as predi ...

Group 1 - Freddie Mac has released its 2026 funding calendar, which includes optional announcement dates for Reference Notes and Reference Bills securities [1][2] - The issuance size and frequency of Reference Notes and auctions for Reference Bills will depend on the company's funding needs and market demands [1][3] - Reference Bills auctions will occur weekly on Monday mornings, with adjustments made if Monday is a holiday, and all auctions will close at 9:45 a.m. Eastern time unless stated otherwise [3] Group 2 - Freddie Mac's mission is to enhance liquidity, stability, and affordability in the housing market, supporting families in buying, renting, or maintaining their homes since 1970 [5]

Core Insights - Freddie Mac presented its Third Quarter 2025 Financial Results, indicating a focus on key business drivers and financial performance [1][2]. Group 1 - The presentation was led by Christopher Spina, Vice President of Public Relations and Digital Communications, alongside Jim Whitlinger, Executive Vice President and Chief Financial Officer [1]. - The company highlighted that forward-looking statements may be made during the call, which are based on assumptions about business drivers and other factors that could lead to variations in actual results [2]. - A replay of the call will be available on the company's website, emphasizing the importance of the information shared during the presentation [3].

Core Viewpoint - Freddie Mac reported its Third Quarter 2025 financial results and filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission [1] Group 1: Financial Reporting - The company's Form 10-Q and earnings press release, along with the Third Quarter 2025 financial results supplement, are available on the Investor Relations page of the company's website [1] - A call will be held at 9 a.m. Eastern Time on October 30, 2025, to share results with the media, which will be webcast and available for replay for approximately 30 days [2] Group 2: Company Mission - Freddie Mac's mission is to make home possible for families across the nation, promoting liquidity, stability, and affordability in the housing market throughout all economic cycles [3] - Since 1970, the company has helped tens of millions of families buy, rent, or keep their homes [3]

Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Core Viewpoint - Freddie Mac is set to report its Third Quarter 2025 financial results on October 30, 2025, before the U.S. financial markets open [1]. Group 1: Financial Reporting - The financial results will be shared during a call at 9 a.m. Eastern Time on the same day [2]. - The call will be webcast live, and a replay will be available on the company's website for approximately 30 days [2]. - All related materials will be accessible on the Investor Relations page of the company's website [2]. Group 2: Company Mission - Freddie Mac's mission is to make home ownership possible for families across the nation, promoting liquidity, stability, and affordability in the housing market [3]. - Since its inception in 1970, the company has assisted tens of millions of families in buying, renting, or maintaining their homes [3].