iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,436 Blog Posts

Remember The Bag Holders

Aside from the bag holders of Fannie Mae [[FNM]] /Freddie Mac [[FRE]] /SLM Corporation [[SLM]] common, which I highlighted the other day, there are a ton of banks out there who are long preferred stock too, albeit on a much smaller scale than the retards at Legg Mason, Inc. [[LM]] .

Nonetheless, should FNM/FRE get taken out and shot, expect there to be lots of write downs, as erroneous banks see their investment dollars burn to a cinder. On the balance sheets, where it says “cash equivalents,” expect to see reductions in that number, across the banking spectrum.

At the present, I am trying to research who owns this stuff. However, as you can imagine, it’s rather difficult to ascertain. I know Corus Bankshares, Inc. [[CORS]] has exposure. But, the more I think about it, Pzena Investment Management, Inc. [[PZN]] keeps coming up as a “massive loser” amidst all of the noise—owning nearly 400 million dollars worth of FNM/FRE.

Unfortunately, there is never any stock to borrow.

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21 comments

  1. Sman7

    I looked for puts on PZN yesterday and came up empty. No stock to borrow. Is there any other way to play the downside on this one?

    Either that or the TD Waterhouse guy is braindead.

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  2. DPeezy

    PZN definitely not optionable.

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  3. The Fly

    I believe Karen Finerman, from Fast Money, owns some for her fund.

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  4. Donny

    GSE investors are retards!

    CRUDE is going down further!

    Several large banks are going bankrupt!

    Dumb Fuck Faces, who don’t know what they’re doing in the stock market will lose their balls to a meat grinder!

    The world economy is going straight down the shit hole!

    Sorry for being so gawddamn pessimistic!

    Ta-Ta!

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  5. CubsRock

    I would like to pick up some DIG here but oil just doesn’t seem ready yet.

    I tried shorting PZN here also, no go.

    IYR short/SRS seems like a great pick here.

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  6. SPG to 50

    this stock is a joke and will get the homo hammer…commercial reits…sweet business to be in these days with retail awesome

    http://www.finviz.com/quote.ashx?t=spg

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  7. The Fly

    I agree. That’s why I am long SRS.

    Every so often, I get 500 shares of PZN to borrow. It adds up over time.

    FED spike is fadeable today.

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  8. The Fly

    Take a look at the junk RBS is pushing this morning:

    Three Month Reverse Convertible Notes
    RevCon
    No. Reference Stock Ticker
    Coupon
    Rate
    Barrier
    Price Term Monitoring Method CUSIP
    908 Apple Inc. AAPL 10.75% 75% 3 month Close of Trading Day 78008GME9
    909 Apple Inc. AAPL 16.00% 80% 3 month Close of Trading Day 78008GMF6
    910 Peabody Energy Corporation BTU 21.00% 70% 3 month Close of Trading Day 78008GMG4
    911 Cal-Maine Foods, Inc. CALM 23.55% 65% 3 month Close of Trading Day 78008GMH2
    912 Chesapeake Energy Corporation CHK 15.00% 70% 3 month Close of Trading Day 78008GMJ8
    913 Canadian Natural Resources Ltd. CNQ 9.75% 70% 3 month Close of Trading Day 78008GMK5
    914
    Freeport-McMoRan Copper & Gold,
    Inc. FCX 21.50% 70% 3 month Close of Trading Day 78008GML3
    915 First Solar, Inc. FSLR 25.50% 75% 3 month Close of Trading Day 78008GMN9
    916 First Solar, Inc. FSLR 14.30% 65% 3 month Close of Trading Day 78008GMP4
    917 General Motors Corporation GM 14.00% 60% 3 month Close of Trading Day 78008GMQ2
    918 Huntsman Corporation HUN 20.55% 60% 3 month Close of Trading Day 78008GMR0
    919 LDK Solar Company Ltd. LDK 14.00% 60% 3 month Close of Trading Day 78008GMS8
    920 LIFE TIME FITNESS, Inc. LTM 34.80% 80% 3 month Close of Trading Day 78008GMT6
    921 Petroleo Brasileiro S.A. PBR 12.25% 80% 3 month Close of Trading Day 78008GMU3
    922 Companhia Vale do Rio Doce RIO 19.25% 80% 3 month Close of Trading Day 78008GMV1
    923 Southwestern Energy Company SWN 20.25% 70% 3 month Close of Trading Day 78008GMW9
    924 Target Corporation TGT 10.75% 75% 3 month Close of Trading Day 78008GMX7
    925 Titanium Metals Corporation TIE 25.75% 70% 3 month Close of Trading Day 78008GMY5
    926 Terra Industries Inc. TRA 15.25% 65% 3 month Close of Trading Day 78008GMZ2
    927 Wells Fargo & Company WFC 26.00% 75% 3 month Close of Trading Day 78008GNA6

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  9. The Contractor

    Going long the indexes.

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  10. The Fly

    This one stands out, as the worst:

    927 Wells Fargo & Company WFC 26.00% 75% 3 month Close of Trading Day 78008GNA6

    Another Cramer fav’

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  11. jeff

    back from Puerto Vallarta fuckers – what the fuck is up with gold

    long and strong gold, pbr, rig, others

    go to mismaloya bay Barcelo hotel and drink Pacifico’s and shut the fuck up

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  12. Can of Corn Humper
    Can of Corn Humper

    When Paulson announces the precise terms/details of how he intends to saddle our grandchildren with the burdens of the FRE bailout, will that trigger another short covering rally in the banks?

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  13. sniper6

    yes. Then short them to death again. We have to leave our grandkids with lots of money to pay that debt down.

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  14. anjing bau

    after the CPN what does barrier mean? Pls & Thx.

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  15. TraderCaddy

    Not only wouldn’t I buy what RBS is pushing I don’t even know what that junk means. It might as well be the Romanian National Anthem

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  16. anjing bau

    never mind just googled it and understand what the barrier is

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  17. TraderCaddy

    Three month reverse convertible notes sounds like a Bill Belichick football play.

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  18. jeff

    Any of you guys want to get into the Monavie bidness let me know. I just fell for the hype. The juice is actually pretty good.

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  19. buckeye bob

    Need some help – should I get a cheeseburger Happy Meal for lunch or buy a share of FRE????

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  20. Juancho

    I have to laugh that about 2 weeks ago, I got a -1 for saying long oil was always smart.

    Paulson gassing up the PPT-mobile as we speak, Bernanke has the FEDcave on high alert.

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  21. jimrogers

    Told you so a few weeks back:

    http://video.google.com/videoplay?docid=-4798940536744197498&ei=aWisSMniDoXWqQK0xrzeDw&q=jim+rogers+fannie&vt=lf

    best part is 2:00 when they ask me if I covered my shorts.

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