SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (40519)11/3/2005 12:11:10 AM
From: mishedlo  Read Replies (2) | Respond to of 116555
 
I think Fannie does well as long as rates either stay flat or rates continually go for long stretches of time in one direction.

This back and forth movement above and below their dynamic hedging trigger points is killing them.

Furthermore and I said so at the time, I suspect Greenspan's "recommendation" to buy ARMs right at the lows in yield was done to protect Fannie Mae, transferring interest rate and hedging risk to the consumer.

Mish


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News