Never been better

FANNIE Mae and Freddie Mac may sound like a couple living in suburban America but they are in fact two of the country’s more unusual listed companies. With a government-backed guarantee, Fannie and its sibling Freddie buys mortgages from lenders and packages them for resale.

Looking at the headlines, it may seem that both Fannie and Freddie are in financial trouble again. On February 19th, Freddie Mac reported a sharp decline in its net income last year, which fell from $48.7 billion to $7.7 billion. The next day, on February 20th, Fannie Mae also announced a big fall in earnings. Falling market interest rates forced the pair to declare losses from their derivatives on their accounts, although the impact of this will even out in the long term.

But in fact both Fannie and Freddie have emerged from the financial crisis churning out more profits before tax…

… – Source      

Never been better