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Investors prepare for GSEs future as private firms

Investors are cashing in on Fannie Mae and Freddie Mac preferred stock, placing bets that both Enterprises will return to private firms. 

Fannie Mae's 8.25% of preferred shares have more than doubled this year to $4.31 on Friday.

"The idea is eventually, as these companies have paid back their debt to the government, they could potentially be turned back on," said Bose George, an analyst at Keefe Bruyette & Woods.

Source: Bloomberg

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