I called on Fannie Mae (FNM) on August 30th and is down 28% since then. This is a review.
Conclusions first: Extremely risky as it is, I still believe Fannie is a good buy value-wise. I would be buying more when the sell-off wanes.
What worry you most would be the charge off and the potential government actions. While 2% net charge off would demise Fannie as I stated earlier and the possibility is higher than I initially thought after digging deeper, what the government would do about it put it into high volatility. I cannot predict the latter. Here is an example.
Value Drivers of Fannie
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