Odeon's Dick Bove Sees High Probability GSEs Will Be Released from Conservatorships in 2019 (FNMA) (FMCC)

In a note to clients today, Odeon Capital's Dick Bove said he continues to believe that there is a high probability that the GSEs will be released from their conservatorships in 2019.

"There are economic reasons related to housing; pressures developing in the courts; and positive movement in the Administration suggesting that this may happen," Bove commented. "If it does, there may be substantial capital gains available to the holders of these issues."

Bove sees the next move in the Fannie Mae 8 ¼ Junior Preferred as higher.

"One never knows if the pressure to free the GSEs from their conservatorship will end but it would appear that there are a very strong set of forces moving to make that happen at present," he concludes. "Further capital gains for investors seem likely."

Related Stocks:

Freddie Mac (OTC: FMCC)
Fannie Mae (OTC: FNMA)

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