Identifying Sound, Anti-Bubble Trades: Fannie Mae and Freddie Mac — Live with Michael Kao and Tim Pagliara

Published on
February 8th, 2021
Duration
66 minutes

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Identifying Sound, Anti-Bubble Trades: Fannie Mae and Freddie Mac — Live with Michael Kao and Tim Pagliara

Live ·
Featuring Michael Kao, Tim Pagliara, and Max Wiethe

Published on: February 8th, 2021 • Duration: 66 minutes

For investors choosing to not participate in certain markets due to perceived bubble risk, deeply distressed assets that have upcoming catalysts and are not tied to broader market risks can offer a trade with an appealing risk/reward on returns. In this interview with Real Vision editor Max Wiethe, Michael Kao, CEO of Akanthos Capital Management LLC, and Tim Pagliara, founder, chairman, and CIO of CapWealth, do a full deep dive into Fannie Mae and Freddie Mac, which presents such an opportunity. Both highly respected for their analysis of Fannie and Freddie’s situation for the past twelve years, Kao and Pagliara break down what’s occurring and the positive catalysts they foresee over the next several months for Fannie and Freddie shareholders.

Comments

Transcript

  • DS
    Dusty S.
    20 February 2021 @ 19:02
    Tim Pagliara, at the end of the interview, highly recommended viewers read Tim Howard's Amicus briefs. https://www.supremecourt.gov/DocketPDF/19/19-422/154595/20200922104336414_Amicus%20Brief%20of%20Timothy%20Howard%20for%20Filing.pdf
    • DS
      Dusty S.
      21 February 2021 @ 00:48
      Also, not sure why it's not mentioned/linked, but CapWealth's 13F (that was mentioned) shows the Fannie preferred. Click on the Info Table https://www.sec.gov/Archives/edgar/data/1531809/000153180921000002/0001531809-21-000002-index.htm In the interview, Tim is the Capwealth CIO https://www.capwealthgroup.com/our-team
    • MW
      Max W. | Real Vision
      21 February 2021 @ 18:02
      At the beginning of the interview it was disclosed that everyone is invested in the trade one way or another.
  • CR
    Christopher R.
    15 February 2021 @ 06:44
    Anyone know tickers for all discussed? New to these as a non us person and looking to study each 1by1.
    • CR
      Christopher R.
      15 February 2021 @ 06:48
      i dont get why there are so many different tickers 😅
    • MW
      Max W. | Real Vision
      15 February 2021 @ 16:13
      $FNMA is the common equity. The other tickers are the different series of junior preferred shares. Different rounds of debt. Major differences in price between the junior preferred tickets are most likely due to the different par values of the offerings, but idiosyncrasies do exist.
    • CR
      Christopher R.
      16 February 2021 @ 04:35
      Thanks as always Max!
  • GB
    Gary B.
    10 February 2021 @ 21:53
    Bad sound on this one. Someone’s clicking a pen and shuffling papers through the entire presentation. Presenters should mute themselves when not speaking!
  • JK
    Jens K.
    10 February 2021 @ 08:35
    Du he just say Lehman x10 and Max just continued with next question ?!
    • JK
      Jens K.
      10 February 2021 @ 08:35
      Did*
    • MW
      Max W. | Real Vision
      10 February 2021 @ 14:36
      The whole interview is establishing the reasons why that can't/won't happen and that statement by Michael was meant to show why he has such high conviction that receivership is essentially a non-possibility. It was not meant to open the door to exploration of the consequences of this extreme outcome. Should the probabilities shift, you can rest assured that we will bring these two back to discuss the consequences of receivership for the mortgage market and the rest of the financial system.
  • DH
    David H.
    10 February 2021 @ 04:23
    Well worth 1 and 20 gentlemen. Good luck
  • MC
    Michael C.
    10 February 2021 @ 00:00
    Great interview! Let's get this duo back for an update