Fannie, Freddie’s Latest Bull Says Traders Underpricing IPO Odds

Fannie Mae and Freddie Mac investors are underestimating the chances of a public market re-entry from the mortgage giants after a lull in chatter around the names, according to Mizuho’s Dan Dolev.

Dolev initiated both companies this week with buy ratings, citing a base case assuming a 30% chance that Fannie will exit its government conservatorship by 2028, and a 20% chance for Freddie. The public listings could command a higher priority for the Trump Administration as the war between the US and Iran improves, he said.

“The market is giving too low of a probability of them going ...