- Fannie Mae is trading at $3.69, down 8.66%, after investor Michael Burry warned of potential dilution to common shareholders if the Treasury converts its senior preferred stake to common equity, estimating at least 90% dilution.
- On October 12, Mizuho downgraded FNMA from Buy to Neutral, citing diminishing prospects for privatization by 2028 and evolving regulatory conditions.
- Burry confirmed selling common shares for junior preferred shares to capture tax losses and better position for a potential conversion.