Kyle Bass sees preferred stock in Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) as a...

Kyle Bass sees preferred stock in Fannie Mae (OTCQB:FNMA) and Freddie Mac (OTCQB:FMCC) as a potential "eight- to 10-bagger," trading at just $0.08 on the dollar. He says the GSEs are making money on debt they owe the U.S. government, big tax-related assets could be brought back onto balance sheets, and mortgage fees eventually should rise from 20 bps to 60 bps.