A stunning one-day surge of 40% in Fannie Mae (OTC:FNMA) and a 47% rise in Freddie Mac (OTC:FMCC) stocks has shocked the market, but the real story could be in the overall, untapped opportunity in mortgage- and housing-related exchange-traded funds (ETFs).
The catalyst for this market movement can be attributed to the unusual alignment of billionaires Bill Ackman and Michael Burry, who both agree that Fannie Mae and Freddie Mac are “asymmetric” investment opportunities with huge potential for growth, as their long-awaited exit from conservatorship could revolutionize the U.S. housing finance industry.
• What’s ahead for MBB stock?
Mortgage ETFs In The Spotlight
While Fannie Mae and Freddie Mac stocks hold retail attention now, ETF investors may find a more diversified play in mortgage-backed securities (MBS), which could be an alternative trade.
The iShares MBS ETF (NASDAQ:MBB) and the Vanguard Mortgage-Backed Securities …Full story available on Benzinga.com
Evercore ISI predicts ‘inflection point’ is days away, plans to commit capital if S&P 500 drops to this level
...
Read moreDetails