The Trump administration plans to sell shares of Fannie Mae and Freddie Mac by the end of 2025, targeting a valuation of $500 billion. Analysts express doubts about the feasibility of meeting these goals, primarily due to potential delays in assessing capital levels. A rushed approach could harm investor appetite for the stocks, while allowing more time could provide better clarity on government roles and capital issues. The administration hopes to raise around $30 billion by selling 5% to 15% of the stock, although execution risks are elevated and concerns persist regarding fundamental challenges.
Analysts express concern over the feasibility of the Trump administration's goal to complete the sale of Fannie Mae and Freddie Mac shares by 2025, citing challenges in capital levels and execution risks.
The planned stock offering by the government-sponsored enterprises could raise approximately $30 billion but faces skepticism due to fundamental challenges and potential impact on investor appetite if rushed.
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