The Irrational Exuberance of Fannie and Freddie Investors
Some of Wall Street’s most powerful financiers are likely to be disappointed by the Trump administration’s treatment of Fannie Mae and Freddie Mac.
Barrons’ reports:
Wall Street has a pitch for Donald Trump: Cement your place in history as the “Art of the Deal” president with your biggest deal ever.
Hedge fund managers like Bill Ackman have built huge stakes in Fannie Mae and Freddie Mac, betting the government-sponsored entities will be privatized by the president-elect at some point in his second term. Trump has said he wants to do it. Now that he’s taking office, some investors are betting it’s just a matter of time and ironing out the details.
Fannie and Freddie are central to the U.S. mortgage market, owning or guaranteeing around half of all residential mortgages. While they do not make home loans…
