Will GSEs’ record-high capital requirements scare investors away?
Some observers wonder if proposed regulatory targets for Fannie Mae and Freddie Mac will stoke concerns about low shareholder returns. But others suggest those fears are unfounded.
Risk-based capital
FHFA plan would make GSEs hold banklike capital amounts
The much-anticipated proposal, which would not go into effect until after Fannie Mae and Freddie Mac are privatized, reflects Director Mark Calabria’s aggressive efforts to get the companies on a strong financial footing.
Fannie and Freddie will likely exit conservatorship by 2024, Calabria says
And the government-sponsored enterprises could hold initial public offerings in 2021 or 2022 to ensure they hold adequate capital, FHFA Director Mark Calabria said.
Fannie, Freddie will retain $45B in capital in first step toward privatization
The move to alter the government's preferred stock purchase agreements is the first major one under FHFA Director Mark Calabria's tenure to wind down the conservatorship of the government-sponsored enterprises.
U.S. CLOs risk losing Japanese investor base under proposed rule
The Japan Financial Services Agency is considering increasing capital requirements for holdings of securitizations if the sponsors do not have "skin in game."
By
Glen Fest
