Demetrius Michael

Options Trader: Monday Outlook

Do you even trade in real life?

Options Trader: Friday Outlook

Don't base trading on what you have in your portfolio. It may or may not be right, but it's sounds like you want the stock to go up.


On Jul 11 10:35 AM jonathan wrote:

> I agree with Phil. Unless I have it wrong (could be), my understanding
> is that Fannie and Freddie do not have much in the way of REAL losses.
> They are a reporting an enormous amount of Mark-to-Market losses...i.e.
> if they sold their loan portfolio today no-one would want to buy
> it...but their business is not in selling loans it is in buying.
> Their whole purpose is to buy and hold mortgages. So it seems to
> me that the best (only?) way to fairly value them is on the credit
> risk. I.e. if they don't sell the loans the mark-to-market is an
> accounting-ism and as long as the loans are being paid back (or not)
> the value of the company is entirely a result of the cash flow of
> mortage payments. Yes, that payment flow will be missing some payments
> from defaulting owners but that is measurable in their default and
> foreclosure numbers.
>
> I don't own any as of this second but if I very well may by the end
> of the day. Obviously the speculative part of the portfolio :)