The Institutional Risk Analyst

The latest statements about a possible stock offering for the GSEs seem to be designed to boost the share price in the near-term and do not provide any more information than we had when such statements were made previously.  Given the management changes announced yesterday and the other requirements for a successful offering, we have a hard time believing that a GSE stock offering will occur this year.  Notice how the shares of Fannie Mae popped for a couple of days this week

Citigroup leads the pack with a net loss rate of 133 basis points (bp) that is almost five times the average for Peer Group 1 at 27 bp.

BMO arguably has the weakest reserve position among the large Canadian banks....

We see an at least equal chance that margins will get squeezed for agency and MSR investors before they expand via higher interest rates