Comments on: Rebuttal to GSE Worthless Analysis http://derekpilecki.com/126/rebuttal-to-gse-worthless-analysis/ Thu, 29 Jul 2010 20:29:36 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Derek http://derekpilecki.com/126/rebuttal-to-gse-worthless-analysis/comment-page-1/#comment-499 Derek Wed, 28 Oct 2009 13:15:44 +0000 http://derekpilecki.com/?p=126#comment-499 My friend John Hempton from Bronte Capital wrote another rebuttal of KBW's piece. His analysis is here: http://brontecapital.blogspot.com/2009/10/new-gse-as-zero-meme-laying-assumptions.html He adds 2 additional points that I did not include in my analysis: 1. KBW double counts credit losses in their model. This is worth $6 billion to each company over the 10 year model. 2. KBW gives GSEs no credit for the rebound in prices for their non-agency holdings. He also makes an interesting point that the low end of the housing market is clearing out inventory faster than expected. My friend John Hempton from Bronte Capital wrote another rebuttal of KBW’s piece. His analysis is here:

http://brontecapital.blogspot.com/2009/10/new-gse-as-zero-meme-laying-assumptions.html

He adds 2 additional points that I did not include in my analysis:
1. KBW double counts credit losses in their model. This is worth $6 billion to each company over the 10 year model.
2. KBW gives GSEs no credit for the rebound in prices for their non-agency holdings.

He also makes an interesting point that the low end of the housing market is clearing out inventory faster than expected.

]]> By: PlanMaestro http://derekpilecki.com/126/rebuttal-to-gse-worthless-analysis/comment-page-1/#comment-457 PlanMaestro Tue, 20 Oct 2009 21:54:44 +0000 http://derekpilecki.com/?p=126#comment-457 Thanks for the analysis, from a person long prefs short common. http://variantperceptions.wordpress.com/2009/09/07/market-madness-freddie-mac-edition/ Thanks for the analysis, from a person long prefs short common.

http://variantperceptions.wordpress.com/2009/09/07/market-madness-freddie-mac-edition/

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