TAMPA,
Fla., Jan. 7, 2025 /PRNewswire/ -- While the
upcoming launch of Trump 2.0 has generated a lot of public
speculation about the incoming administration's policies on
immigration, tax cuts and tariffs, another area of policy focus
from President Trump's first term could be
revived: reprivatizing Fannie Mae and Freddie Mac. In a new
research paper, DoubleLine Portfolio Manager Kunal Patel, CFA, and Analyst Alex Shvartser take a look at the history of the
government-sponsored enterprises (GSEs) under conservatorship, the
challenging pathway to reprivatization and such a move's impact on
the Agency mortgage-backed securities market.
The research paper, "Agency Mortgage-Backed Securities: Fannie
and Freddie Private Again Under Trump 2.0?," can be accessed here:
https://doubleline.com/wp-content/uploads/AgencyMBS-Privatization-of-Fannie_Freddie_Jan2025.pdf.
"Privatizing the GSEs, if pursued, would be a massive and
complex project that would take multiple years and likely require
coordination among all three branches of government," Messrs. Patel
and Shvartser write. "While privatization has significant risks and
unclear political or economic upside relative to the status quo, it
is certainly possible, and there is a good chance parts of it will
be attempted at some point by the incoming administration, which
might be a catalyst for sporadic volatility in the Agency
mortgage-backed securities market."
Kunal Patel, CFA, is a Portfolio
Manager on DoubleLine's Structured Products team. Mr. Patel joined
DoubleLine in 2016 as a Mortgage Trader specializing in Agency RMBS
and was later promoted to Portfolio Manager in 2021. Prior to
DoubleLine, he worked as a Managing Director responsible for CMO
and specified pool trading at Cantor Fitzgerald. Prior to that, Mr.
Patel worked as a CMO, ARMs and Specified Pool Trader and Deal
Structurer at Morgan Stanley, BNP Paribas and RBS Greenwich
Capital. He holds a B.A. in Economics from Cornell University. Mr. Patel is a CFA®
charterholder.
Alex Shvartser is an Analyst on
DoubleLine's Structured Products team. Mr. Shvartser joined
DoubleLine in 2020 as an Analyst on the Agency RMBS team. Prior to
DoubleLine, he was with TCW as a Senior Vice President, Investment
Analytics. Prior to TCW, Mr. Shvartser was a Quantitative Analyst
at ICE Canyon. Prior to ICE Canyon, he was Vice President at
BlackRock in the Financial Modeling Group. Mr. Shvartser holds a
B.S. in Electrical Engineering from the California Institute of Technology and an M.S. in
Mathematics in Finance from New York
University.
About DoubleLine
DoubleLine Capital is an investment adviser registered under the
Investment Advisers Act of 1940. DoubleLine's offices can be
reached by telephone at (813) 791-7333 or by email at
info@doubleline.com. Media can reach DoubleLine by email at
media@doubleline.com. DoubleLine® is a registered trademark of
DoubleLine Capital LP.
©2025 DoubleLine Capital LP.
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SOURCE DoubleLine