Fannie Mae is trading at $3.47, down 14.11%, after Michael Burry warned that a potential Treasury conversion of its senior-preferred claim could severely dilute common shareholders.
- Burry said he sold his common shares.
- Mizuho downgraded Fannie Mae to Neutral from Outperform and cut its price target to $5 from $10, citing weaker prospects for privatization by 2028.
- Company-specific concerns offer a stronger explanation than the nearly flat broader U.S. market.