FANNIE MAE PFD S (OTCBB:FNMAS) was notable decliner during Wednesday’s trading session declining by 2.5% on heavy volumes, which were 6 times the daily average. The stock has been underperforming the broader markets over the last several months. FANNIE MAE has been forming lower tops and lower bottoms indicative of the strong bearish momentum and has broken below the key support level at $4.61.The oscillators, which measure momentum, are clearly indicating that bears are in total control at the current moment. The index for relative strength has given a fresh sell signal, which is considered to be a bearish sign.
FANNIE MAE PFD S (OTCBB:FNMAS) announced financial results for the recently concluded September quarter. The biggest highlight of the quarter was a sharp decline in the comprehensive income in the quarter. As per the reports, 3Q2014 witnessed a comprehensive net income of $4,000, which came down to $2,213 in 3Q2015.
Financial Highlights
One thing that contributed most to this decline was fair value loss. As per the reports, Fannie Mae reported a fair value loss of $207 million in 3Q2014, whereas, in the recently concluded quarter, the amount increased to $2,589 million. Company’s net interest income for the quarter was $5,588 million as compared to $5,184 million in 3Q2014. Fannie Mae has two major sources from where it earns interest income – guaranty fees for managing credit risk on debt, difference b/w interest exp and interest income earned on the assets in its portfolio.
Other sources of income for the company are transaction fees, multifamily fees, technology fees, and miscellaneous income. Its fees and other income for the September quarter and first nine months of the year reduced due to obvious reasons, which put an adverse impact on company’s financial position. Overall net income for the quarter was $2 billion compared with last year’s $3.9 billion. Based on the quarterly performance, Fannie Mae predicts that it would come out as a profitable business at the end of the year.
In terms of dividend payment to Treasury, it announced that it would have paid a total of $144.8 billion with the December payment. However, it doesn’t reduce the aggregate due amount of $116.1 billion under the senior preferred stock purchase agreement. The senior management team of Fannie Mae PFD is delighted to announce this update and hopes that the financial market will improve with the passage of time and so as its balance sheet. It will keep all the shareholders informed about its future initiatives.
