Reading the fine print
The financial ratings by Moodys on govt backed mortgage securities dropped.
The ratings on other Fannie Mae debt instruments remained stable.
They need to raise / issue more capital to cover their reserve and provide liquidity to compensate for the poor quality of some of their holdings, such as, mortgage backed securities.
The result is the stock is going up! How does that make sense? Watch out what you expect from this volatile market.
by Norton
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