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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Pogeu Mahone who wrote (37037)	8/8/2003 9:16:26 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

...just wanted to post that myself (bought Times for my flight back to Europe). Here's some internal numbers provided by unnamed internal source: "Walking a Fine Line The value of Fannie Mae's immense portfolio of mortgages is highly sensitive to rapid changes in interest rates, either up or down. Each week, the company estimates the potential effect of a rate shock - an abrupt move in interest rates - on its holdings. Here is how much value the portfolio would have lost if there had been a rate shock on Jan 7, according to the company's computer model: rate change value lost -1.0% 8.5B$ -0.5% 3.0B$ 0% 0.0B$ +0.5% 0.8B$ +1.0% 4.0$B +1.5% 9.2B$ " Numbers picked out of the chart (NYT Thur 7th, C1) Were it a bank or some bookie, I'd say FNM is selling straddles. At 50$ debt for every 1$ of equity. Maybe the unnamed internal source should be called Deep Straddle; RegZ dj