Treasury Secretary Bessent Will Focus on Whether GSE Recap/Release Will Increase Long Term Mortgage Rates. The Best Way to Answer This Question Is To Survey Knowledgeable Market Participants.
Excellent work and rebuttal of what the GSE foes are spreading on both sides of the Hill; urge you to share it with members of Senate and House Banking Committees to challenge what the MBA, UI, Moody's and others are propagating.
If you do that, you might also suggest those congressional folks look closely at Moody's role in the PLS debacle on 2007-2008 and the costs of the MBA's proposal (to put various GSE debt and MBS on budget).
I know you are of the opinion that the SPS will be cancelled to maximize warrants but what's the case for the government to not cancel them? What are the pros and cons for the govt and how much $$ would they potentially net in that scenario, to the degree that one can conjecture?
Just curious if you are aware of any think tanks beginning the studies for the rebuttal to UI and MBA studies that I am sure are underway regarding increased MBS rates?
I found the UI arguments very weak. Leads me to believe “studies” on the side of release are also speculative and weak. If institutional investors buying GSE MBS are not fussed by release you are not likely to find any study to conclude differently
Excellent work and rebuttal of what the GSE foes are spreading on both sides of the Hill; urge you to share it with members of Senate and House Banking Committees to challenge what the MBA, UI, Moody's and others are propagating.
If you do that, you might also suggest those congressional folks look closely at Moody's role in the PLS debacle on 2007-2008 and the costs of the MBA's proposal (to put various GSE debt and MBS on budget).
Great one!
I know you are of the opinion that the SPS will be cancelled to maximize warrants but what's the case for the government to not cancel them? What are the pros and cons for the govt and how much $$ would they potentially net in that scenario, to the degree that one can conjecture?
The GSEs cannot sell any common stock if the SPS remains outstanding. So the GSEs can’t raise additional capital through stock issuances.
Just curious if you are aware of any think tanks beginning the studies for the rebuttal to UI and MBA studies that I am sure are underway regarding increased MBS rates?
I found the UI arguments very weak. Leads me to believe “studies” on the side of release are also speculative and weak. If institutional investors buying GSE MBS are not fussed by release you are not likely to find any study to conclude differently