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Happy Weekend Greenprint


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I think the preferred will be fine on Fred and Fan, and I think the regular equity might be fine too.

 

What they should do is merge these two P'sOS and allow the preferred to be cashed out or exhanged, issue new equity that will be exchanged for the old shares and do an exchange on all the old debt. EZ cheesy japaneze.

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I forgot who said it earlier this week, Brick? 4shzl? Hank?, but someone mentioned that it was about time for Hank to do an over-the-weekend prison arse r_pe to the bears because of the recent market weakness.....

 

You were right? (whomever it was)

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Not often can news noise be timed this precisely, but it was clear the F & F problem couldn't be deferred any longer. The devil is in the details of course, but any explicit Treasury guarantee for F & F paper should light a fire under Trashury yields. Looking for a gap down in prices Sunday night. :)

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Treasuries fell amid speculation the U.S. is close to reaching a plan to help troubled mortgage finance companies Fannie Mae and Freddie Mac, easing the haven appeal of government debt.  Yields climbed after the Wall Street Journal reported that the Treasury Department could announce a plan as early as tomorrow.

. . . .

 

``Prices just evaporated'' after the newspaper report broke, said Tom di Galoma, head of U.S. Treasury trading at Jefferies & Co., a brokerage for institutional investors in New York. ``There's probably some good story on the senior debt, that there's going to be a backstop set.''

Zoomberg

 

It's ALL good. :D

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AH: now FNM down 1.2 to $5.90

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Someone has to take a haircut (the common bagholders) -- they've already been crushed, so no problem there. And someone has to walk the plank (senior management) -- with golden kissoffs. That's the way these things work -- Beltway kabuki.

 

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SKF continues to get poleaxed in After Hours.

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I went long SKF for a swing trade since it seemed like the financials were about to come unglued again. Instead I have give the Boyz more of my money like an idiot.

 

Paulson knows everyones positions, worldwide.

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