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17 handpicked stocks

The Great Mortgage Privatization

The planned IPOs for mortgage giants Fannie Mae and Freddie Mac signal a historic shift toward privatization in the U.S. housing market. This move stands to benefit not only the investment banks managing the deal but also a wider ecosystem of mortgage lenders and insurers.

Author avatar

Han Tan | Market Analyst

Published on August 11

Your Basket's Financial Footprint

Interpretation of market capitalization for 'The Great Mortgage Privatization' basket.

Key Takeaways for Investors
  • Large-cap dominance likely means lower volatility and closer tracking to broad market performance.
  • Best positioned as a stable core holding rather than a speculative trade.
  • Likely to deliver steady long-term appreciation rather than rapid short-term gains.
Total Market Cap
  • MS: $253.33B

  • GS: $229.76B

  • MTG: $6.26B

  • Other

About This Group of Stocks

1

Our Expert Thinking

The planned IPOs of Fannie Mae and Freddie Mac represent a once-in-a-generation opportunity to reshape America's housing finance system. After 16 years of government control, this privatisation could unlock a $500 billion market and create new competitive dynamics across the entire mortgage ecosystem.

2

What You Need to Know

This group captures companies across the mortgage value chain - from investment banks managing the IPOs to mortgage lenders and insurers who could benefit from increased competition. It's an event-driven opportunity tied to a fundamental shift in how America finances homes.

3

Why These Stocks

These companies were handpicked by professional analysts based on their strategic positioning within the mortgage privatisation theme. Each represents a different way to benefit from this historic transition, from deal facilitators to core service providers in the new landscape.

Why You'll Want to Watch These Stocks

🏛️

Historic Market Shift

This represents the largest privatisation in U.S. financial history, potentially unlocking a $500 billion market that's been under government control since 2008.

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Deal-Making Goldmine

Investment banks managing these IPOs could earn massive fees, whilst mortgage companies prepare for a completely restructured competitive landscape.

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Event-Driven Opportunity

Unlike typical market movements, this theme is tied to specific government policy changes that could create clear winners across the mortgage ecosystem.

Get the full story on this Basket. Read our detailed article on its risks and potential.

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