Fannie and Freddie Shares Tank as Doubt Swirls About Trump Plans

Shares of Fannie Mae and Freddie Mac have fallen about 70% over the last six months and hit their lowest levels in more than a year. The selloff reflects investor doubt about the Trump administration’s plans to sell additional stock in the mortgage-finance giants, raising material downside risk to the companies' market capitalization and future capital-raising efforts.

Analysis

Shares of Fannie Mae and Freddie Mac have fallen about 70% over the last six months and hit their lowest levels in more than a year. The selloff reflects investor doubt about the Trump administration’s plans to sell additional stock in the mortgage-finance giants, raising material downside risk to the companies' market capitalization and future capital-raising efforts.