Breaking: Investment Bankers Hired for Fannie & Freddie Secondary Offering — MSM Hasn't Caught Up Yet

March 30, 2026 — I'm writing this in real time because I don't want to wait for the Wall Street Journal to figure it out.

Investment bankers have been hired — officially — for the Fannie Mae and Freddie Mac secondary offering.

Let that sink in.

Not "exploring." Not "considering." Not "in discussions." Hired. The machinery is now in motion. Sullivan & Cromwell is advising. The banks are in. The offering is being structured.

And as of right now? Mainstream media hasn't caught up. They're still writing about Bill Ackman's tweets.

What Happened Today

FNMA surged 40% today. FMCC followed, up 38%. The headlines are all about Ackman calling the stocks "stupidly cheap" and Michael Burry — yes, that Michael Burry, The Big Short guy — agreeing publicly.

But that's not why I'm writing this.

Ackman and Burry are smart. Crazy smart. But they're commenting on something that's already in motion behind the scenes. The bankers didn't get hired because of a tweet. The tweet happened because the bankers got hired. Think about the sequencing.

The Ackman & Burry Catalyst

Here's what they said, because it matters:

Bill Ackman posted on X calling Fannie and Freddie "stupidly cheap" — his exact words. He said the asymmetry is "at its best" and suggested they could be a 10x trade. He framed it as potentially the most mispriced opportunity in the entire market.

Michael Burry immediately amplified. The man who shorted the housing market in 2007 and was right when everyone said he was crazy — that guy — looked at Fannie and Freddie in March 2026 and said "yeah, Ackman's right."

When the guy who called the last housing crisis agrees with the guy running a $20B hedge fund that these stocks are stupidly cheap... maybe listen?

Why This Is Different From Every Other "It's Happening" Moment

I've been writing about Fannie and Freddie since 2014. Twelve years. 300+ Seeking Alpha articles. I have watched every false start, every broken promise, every "this is the year" prediction that turned into "maybe next year."

So why do I think this time is different?

Because you don't hire bankers for fun.

You hire Sullivan & Cromwell when you're doing a deal. You bring in bulge bracket banks when there's an actual offering to structure. This isn't exploration. This is execution.

The Trump administration has been signaling this for months:

• Bill Pulte at FHFA talking about a 5% offering as a first step
• The $200B MBS purchase program to stabilize the housing market before an offering
• FSOC's activities-based framework shift that removes the intellectual case for permanent conservatorship
• The ERCF capital rule rework signals

Each of these on their own is a signal. Together, they're a blueprint. And now the bankers are hired to execute it.

The Math

Let me lay this out because the numbers are actually insane:

• Combined net worth: $170B+ (they've been retaining earnings since the net worth sweep ended)
• Annual net income: $25B+ in guarantee fees
• Current market cap (FNMA): ~$6-7B at today's prices
• Rumored offering valuation: $500B combined (per reports of Trump admin targets)
• Current share price: ~$6.79 (after today's 40% move)
• Implied fair value if $500B valuation: significantly higher than $6.79

The government owns 79.9% of each company through the senior preferred stock and warrants. A secondary offering would sell a portion of that stake to the public, establishing a real market price, and begin the path out of conservatorship.

What This Means for Preferred Shareholders

This is where it gets personal. My entire net worth is in GSE preferred stock. 26 series. I've held through the net worth sweep, through multiple administrations, through every disappointment.

A secondary offering of common stock is the single most important catalyst for preferred shareholders because:

1. It establishes a real valuation — not OTC pink sheet pricing, but institutional money pricing
2. It forces the dividend question — you can't do a public offering while preferred dividends are suspended without addressing it
3. It creates institutional pressure — big banks with skin in the game lobbying for full recap and release
4. It's the first domino — once you sell 5%, the path to full privatization becomes a matter of when, not if

My preferred shares have a $25 par value. They're trading at a fraction of that. If the secondary offering happens and the preferred dividend question gets addressed, the math gets very real very fast.

Why MSM Is Behind

Mainstream financial media is still writing "Fannie Mae IPO: Far From Ready" headlines. They're still quoting skeptics who say it can't happen until 2027. They're still treating this as theoretical.

Meanwhile, bankers are hired. Lawyers are billing hours. Slide decks are being built. The offering is being structured.

This is the gap. This is where the alpha is. By the time CNBC runs a breaking news banner, the move will already be priced in. The 40% today? That's the market starting to figure it out. But it's not done.

My Position

I'm not selling a single share. Not one.

I've held this position for 12 years. I've written 300+ articles about it. I've built an entire catalyst tracker on this website. I've documented every trade, every loss, every mistake on my trading analysis page — including my worst trades and my 1W-8L options record.

I don't hide the losses. I don't pretend I'm some genius. But I know what I know, and what I know is this:

The bankers are hired. The offering is coming. The only question is timing.

And if Ackman is right about the 10x... well. Let's just say I'll finally be able to afford to fix the A/C in my Miami Beach apartment.

What to Watch Next

1. Official bank announcement — when the lead underwriters are publicly named, that's the confirmation MSM can't ignore
2. SEC filings — registration statements, S-1 or F-1 filings
3. FHFA guidance — any Pulte statements about offering structure, pricing, timing
4. Preferred stock treatment — how the offering addresses the $33.5B in outstanding preferred stock
5. Uplisting — moving from OTC to NYSE/NASDAQ (necessary before a major offering)

Final Thought

Twelve years. Three hundred articles. Twenty-six series of preferred stock. Every dollar I have.

This is what I've been waiting for.

Not Ackman's tweet. Not Burry's co-sign. Not a 40% day.

The bankers getting hired. That's the signal. Everything else is noise.

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Glen Bradford is the founder of Global Speculation LP and has been writing about Fannie Mae and Freddie Mac since 2014. His current positions are disclosed at glenbradford.com/positions. Follow him @DoNotLose on X.

This is not financial advice. This is one guy who put his entire net worth in GSE preferred stock telling you what he sees. Do your own research. Seriously.