Fundamental Analysis » Freddie Mac, Heads I win BIg,.. Tails I lose but not that much

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Freddie Mac, Heads I win BIg,.. Tails I lose but not that much

The price of freddie mac currentlt stands at $4.50. At this price Freddie might seem like a good buy due to its risk reward ratio.For those who are not sure what freddie mac actually does, they are a governement sponsored entity involved in the purchase and guarantee of 30 year fixed housing mortgages with the purpose of managing liquidity in the mortgage market. They also by the way own a huge portfolio of bonds.The part of the mortgage market that they operate in is the conforming loans market. There have been many investment thesis on this company. Several investors are short it while some are long it. I am probably more inclined to the long side of it for several reasons….
Original Source: valueinvestorhaven.blogspot.com