Posted 1/18/2024, 5:56:56 PM
Trump's Iowa Win Boosts Investor Hopes for Fannie Mae, Freddie Mac Privatization
- Donald Trump's Iowa caucus win boosts investor optimism that Fannie Mae and Freddie Mac could be privatized again
- Keefe, Bruyette & Woods analyst upgraded the GSEs to market perform, saying their stock prices could continue rising on election chances
- During his term, Trump backed an attempt to release the GSEs from conservatorship
- Analyst notes "challenging logistics" of privatization make it unlikely, but market seems to believe Trump could accomplish it
- Prices of Fannie and Freddie stocks are tied to Trump's election chances, according to Odeon Capital analyst