Trump Eyes IPO Path for Fannie & Freddie

Wall Street just got the call: help take Fannie and Freddie public again. Yes, really.

The pitch decks are flying. So are the questions about risk, reward, and déjà vu.

Meanwhile, Washington’s still whispering tariffs. Markets? They’ve heard this tune before and hit snooze.

No shortage of noise. But there’s signal underneath.

Your feedback on the polls has been tremendous. Thank you. Have Another on the bottom for you when you're done reading.

Let’s cut through it. Here come your Morning Bullets.

– Truly yours, Fred Frost

📈 Yesterday's Market Recap

Markets ended the day with modest gains, shrugging off Trump's tariff announcements as more bark than bite. The S&P 500 edged up 0.2%, driven by tech resilience despite broader uncertainties. Investors seem conditioned to discount political noise, focusing instead on solid earnings from Big Tech.

• S&P 500 Futures Barely Blink at Tariff Blitz: Down just 10 points, mostly tied to Amazon's earnings miss rather than trade threats. → Benzinga


• Apple Surpasses Expectations, Boosts Tech Sector: Strong iPhone sales in China drove a 2% after-hours pop, highlighting AI potential amid tariff talks. → CNN


• Amazon Tops Revenue but Shares Dip on Outlook: Revenue hit $167.7B, up from last year, but Q3 guidance underwhelmed, leading to a 7% drop. → ABC News


• Oil Prices Steady Despite Russia Sanctions Risk: Brent crude held at $71.82, as markets weigh tariff impacts against supply concerns. → StockTwits

📉 Daily Performance Snapshot

🔭 What to Watch Today

With tariffs kicking in soon, keep an eye on economic indicators and earnings that could signal real impacts versus rhetoric—remember, government interventions often distort more than they deliver.

💡 Opportunity Watch

Tariff turbulence creates pockets of value for the discerning investor—focus on sectors dodging the noise or benefiting from policy shifts, always prioritizing free-market fundamentals over government favors.

• Battery Storage Boom (E.g., Peak Energy): With $1T global investment projected, domestic sodium-ion plays could thrive amid tariff protections. → Fortune
• Private Credit Funds (Tacora Capital): Oversubscribed $685M fund targets tech lending; a hedge against volatile public markets. → ABL Advisor
• Chinese EVs in Europe (BYD, XPeng): Market share hits 10.6% despite duties; undervalued growth for contrarian bets on resilience. → Benzinga

📊 3 Tickers Just Triggered Buy Signals

INM ran. LLAP surged.
Now 3 new tickers are flashing the same signals. We track them in real time—our latest Krypton Street report breaks it down.

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🔥 The Big Bullet

Trump Eyes Wall Street for Fannie & Freddie’s Next Act

What happened: Donald Trump is floating a plan to privatize mortgage giants Fannie Mae and Freddie Mac. According to Bloomberg, he’s asked top bank CEOs—including those from JPMorgan, Goldman Sachs, and BofA—to pitch how they’d take the entities public. The goal? Structure a public stock offering that pulls them out of conservatorship after nearly two decades in federal hands. The firms, still central to the U.S. housing finance machine, have long been cash cows—but ones the government never quite let go of. → Reuters

Why it matters: Fannie and Freddie underpin $7 trillion in mortgage securities—this isn’t a side show. Moving them from public utility to profit-hungry enterprise may juice underwriting and lift capital markets, but also opens the door to moral hazard déjà vu. The banks would love the deal fees. Taxpayers may not love the tail risk. If this becomes reality, the U.S. mortgage market would shift from government-regulated gear to Wall Street’s private engine—tuned for profit, not public policy.

What’s next: Keep eyes on who gets the advisory mandates—this is a power play wrapped in paperwork. Watch upcoming comments from the FHFA and Treasury; their guardrails (or lack thereof) will shape investor appetite. Also, listen closely on big bank earnings calls for any allusions to “housing finance opportunity.” If this floats, it’s a long runway—but the wheels are starting to turn. Credit risk pricing, secondary MBS markets, and housing affordability narratives will all feel the tremor.

• Trump seeks pitches from bank chiefs on Fannie, Freddie stock offerings – US News
• Trump Wants Pitches From Bank CEOs on Fannie Mae, Freddie Mac. The Stocks Pop. – Investing.com

🧭 Policy & Market Ripples

• The U.S. Economy: Posted a better than expected 3% annualized GDP growth for Q2 → Reuters
• Whale Bets Big on Crypto Rebound: 40x leverage on Bitcoin, 25x on Ethereum amid market dip. → Benzinga
• HPE-Juniper Merger Cleared for Security: Approved to counter Huawei, boosting U.S. tech stack. → Fortune
• Emergency Funds Cut 401(k) Leakage: Workers with $2K+ buffers 19% less likely to tap retirement early. → CNBC
• Reddit Shares Soar on Q2 Beat: Revenue up 78% to $500M, guidance crushes estimates. → StockTwits