<?xml version="1.0" encoding="ISO-8859-1"?><opml version="1.1">	<head>		<title>Fanniemae.opml</title>		<dateCreated>Sat, 20 Apr 2002 11:49:45 GMT</dateCreated>		<dateModified>Mon, 22 Apr 2002 10:49:32 GMT</dateModified>		<ownerName>Ian Bruk</ownerName>		<ownerEmail>ian@bruk.net</ownerEmail>		<expansionState>1, 4, 6, 61</expansionState>		<vertScrollState>1</vertScrollState>		<windowTop>20</windowTop>		<windowLeft>8</windowLeft>		<windowBottom>524</windowBottom>		<windowRight>751</windowRight>		</head>	<body>		<outline text="Current Recommendation (April 15, 2002)">			<outline text="Fannie's Mae stock price has been forming a technical &quot;wedge&quot; over the last two years. Though it is one of the largest and most respected companies in America. Though it enjoys special priviledges and competitive advantages through its relationship with the US Government. Though it is trading at historically low Price to Earnings ratios. And though it is expected to continue to grow its business and profits faster that the American economy over the next several years the stock has remained essentially flat. I believe that the failure of the stock price to break through to new highs is cause of great concern. I am recommending taking a limited short position on this stock at this time."/>			</outline>		<outline text="Fundamental Analysis">			<outline text="Scope of Business">				<outline text="1. Portfolio Investment, in which the company buys mortgages and mortgage securities as investments and funds those purchases with debt.">					<outline text="The corporation derives most of its income from the difference between the yield on its Portfolio Investment. In order to fund the mortgages Fannie Mae buys, we issue debt securities to investors. A significant part of their earnings are derived from the difference between the yield on those mortgages and the cost we endured to buy them. The net interest margin in 2001 was 111 basis points compared with 101 basis points in 2000."/>					</outline>				<outline text="2. Credit Guaranty, which involves guaranteeing the credit performance of single-family and multifamily loans for a fee.">					<outline text="Fannie Mae guarantees the interest payments on these MBS's in return for a 19.0 basis point return.  The resulting MBS (Mortgage Backed Security) carries a guarantee of timely payment of principal and interest to the investor, whether or not there is sufficient cash flow from the underlying group of mortgages. Fannie Mae's obligation under this guarantee is solely Fannie Mae's and is not backed by the full faith and credit of the United States government. The effective guaranty fee rate in the fourth quarter of 2001 was 18.9 basis points compared with 19.3 basis points in the fourth quarter of 2000."/>					</outline>				</outline>			<outline text="Historical Performance">				<outline text="Fannie Mae's combined book of business - the net mortgage portfolio and outstanding MBS held by investors other than Fannie Mae's portfolio - grew at a compound annual rate of 19.0 percent during 2001, ending the period at $1.564 trillion. This growth was fueled by a 16.1 percent annualized growth rate in the net mortgage portfolio to $705.2 billion and a 21.5 percent rate of growth in outstanding MBS to $858.9 billion at December 31, 2001."/>				</outline>			<outline text="Future Performance">				<outline text="Company Projections">					<outline text="In January of 2001 the company stated that its exceptional financial performance was likely to continue in 2002. &quot;We expect growth in Fannie Mae's operating earnings per share in 2002 to again be significantly above the very positive long-term EPS trend we anticipate for the company,&quot; said Raines. Raines noted that the long-term trend for Fannie Mae's earnings would be built upon growth in the residential mortgage market. Raines said the company anticipates that growth in residential mortgage debt outstanding - which averaged 7 percent per year during the decade of the 1990s - will average between 8 and 10 percent per year during the current decade. Raines added that over this period Fannie Mae expects to continue to grow both its book of business and its earnings at rates that exceed the growth in mortgage debt."/>					</outline>				<outline text="General Business Slowdown">					<outline text="Home Equity Loans are one of the reasons the US economy did not experience a painful recession. Over these past 35 weeks prior upto and including February 2002, we've seen huge numbers of American households go out and refinance their mortgages.  One of the mortgage insurance companies recently released a study. In their study, in the average refinanced mortgage, the individual pulled out over $40,000 of equity. This is really a one time event that cannot be duplicated."/>					<outline text="The American Consumer: We had a bubble economy develop with this huge speculative move in NASDAQ. Consumer spending rose dramatically. Consumers now have a negative savings rate. The US We went to over a 400 billion dollar current account deficit. Now that its market collapsed, the whole emphasis will just shift today to selling mortgage-backed securities and credit card receivables. So, I speak a lot in my writing about monetary processes where once they begin, you just can't turn them off. It's like a bureaucracy where the financial sector is going to find a place to lend aggressively, one way or the other. It's going to find a place to try to induce speculative interests."/>					<outline text="Some argue that the influence of the stock market on consumer spending (which in turn is a primary engine in the economy) is relatively muted. For example, a large portion of U.S. stock market ownership takes place inside retirement accounts like IRAs and 401ks, and there are many restrictions on getting at that money. By contrast, a home equity line of credit, once set up, works as easily as a checking account. Some banks are even offering home equity credit cards! How large is the effect? One 2001 study by some prominent economists found that an increase in housing prices spurs about twice as much consumer spending as a similar gain in the stock markets.  "/>					</outline>				<outline text="Interest Rate Fluctuations">					<outline text="Fannie Mae's net interest margin benefited from this year's sharp declines in short-term interest rates, which enabled the company to call debt early in the year in amounts that substantially exceeded the timing and volume of mortgage liquidations. Much of this debt was reissued with short-term maturities in anticipation of a subsequent rise in mortgage repayments. Although most of Fannie Mae's short-term or variable-rate debt has some form of protection against a rise in interest rates, the company's interest costs declined as interest rates fell, and its net interest margin rose as a result. Fannie Mae's interest margin also benefited from attractive spreads on new mortgage purchases during 2001."/>					</outline>				<outline text="Credit Losses">					<outline text="Howard said that while credit losses may rise somewhat in the aftermath of the recession, they are likely to remain low in 2002. Howard noted that the company's book of business is backed by homes with average equity exceeding 40 percent of market value. In addition, Howard said, 35 percent of the mortgages the company owns or guarantees benefit from some form of third-party credit enhancement. Howard added that Fannie Mae's taxable equivalent revenues of $10.2 billion during 2001 were well over one hundred times the $81.3 million in credit-related losses the company recorded during the same period. &quot;Even if Fannie Mae's credit losses were to double this year - which is highly unlikely - it would take less than one percentage point off the company's 2002 EPS growth,&quot; said Howard."/>					</outline>				<outline text="Possible Congressional Intervention">					<outline text="Fannie Mae as a GSE, or Government Subsidized Enterprise, and has recently been under attack. According to the GSE Report, The Congressional Budget Office has estimated that the various benefits received by the GSE's cost the government and taxpayers about $10.6 Billion annually. Of this amount, approximately 1/3 is retained by the GSE's for their own use. The report states that Congress feels these benefits must be directed to serve larger policy priorities."/>					</outline>				<outline text="Derivative Risk">					<outline text="Fannie Mae has a significant exposure to derivatives. Derivatives are a very complicated area but some causes for concern are the following:"/>					<outline text="One of the lessons learnt from the collapse of Long Term Capital Management was that no position can be hedged against sharp and sudden movements in the market the derivative is derived from. "/>					<outline text="Excerpts from an interview with Doug Noland.  He is a financial markets strategist at David Tice &amp; Associates.  He has ten years investment experience as a trader, analyst and a portfolio manager.  Doug posts a weekly column on the PrudentBear.com website called the &quot;Credit Bubble Bulletin.&quot;">						<outline text="The &quot;Credit Bubble Bulletin&quot; was an idea that came to me after watching the U. S. credit system basically resolve itself from problems back from the early 1990's.  If you remember back in 1990, 1991, early in decade we had a problem with the collapsing of the real estate bubble in the Northeast.  We started to see real problems develop in the California real estate market.  We had the collapse of the S &amp; L industry and its bail out.  I started to recognize how the financial system was recovering.  We started to see the creation of a new institution be.  We started to see aggressive lending by Fannie Mae and Freddie Mac.  We started to see a lot of new credit created through the financial markets as opposed to the banking system.  The banking system at the time was impaired and Greenspan used to speak of these head winds and how the economy was struggling because of the weakness in the banking system.  Well, we just created a new way to create credit in the financial markets and with some of these, other institutions.  So, I took a real interest in watching these extraordinary developments.  These things just took on a life of their own and the next thing you know we have a huge bull market in the stock market.  We have a big move in real estate prices.  All of a sudden, we have this incredible prosperity and everyone's speaking of a &quot;new era&quot; and a &quot;new paradigm.&quot;  The whole time I'm watching, basically on a weekly basis, the real factor driving the boom. Both in the markets and in the economy, there was this new contemporary credit mechanism that basically has the ability to create as much credit as possible.  It's a totally unharnessed system.  So that's the credit bubble analysis.  That's why I decided to start writing an article on a weekly basis to focus on this. Really, there is very little attention paid in the media and in the economic community as far as really how this system has changed.  It's unlike anything we've seen in the past."/>						<outline text="I've watched the M3 Index for the last 35 weeks. This goes back through the end of October 2000.  I've seen money supply grow at a 15% annualized rate since then.  It's $700 billion. That's the period that basically started this refinancing boom that we're seeing and that we have seen in the mortgage market as well.  Mortgage credit is a critical aspect of the credit bubble. Over these past 35 weeks, we've seen huge numbers of American households go out and refinance their mortgages.  One of the mortgage insurance companies recently released a study. In their study, in the average refinanced mortgage, the individual pulled out over $40,000 of equity.  I mean these are unbelievable numbers. Through these massive refinancing booms, people will extract equity. A lot of these mortgages are financed through the government sponsored enterprises like Fannie Mae and Freddie Mac. This is the mechanism that is creating all this money.  The traditional analysis is that only banks create money.  I'm seeing that the financial sector creates money and that Fannie Mae and Freddie Mac can borrow through the money market funds, finance these mortgages and create all this new, well what serves as money, in the contemporary financial systems.  Interestingly, it's off most people's radar screens.  Most people would argue and say, &quot;Doug, only banks create money, so we don't even look at these other institutions.  They're just other intermediaries.  They take savings from one individual and lend it to a borrow.&quot;  But, I look at it differently.  It's all of these other entities that are critical aspects of this money supply growth that you are speaking of."/>						<outline text="Well, you know there are two ways to look at this. One way to look at it is that we had a collapse in NASDAQ and in technology stocks. I know that many people were expecting the consumer to retrench and to have a big decline in consumer spending. We have not seen that.  Certainly the economy has slowed, but today we remain in an environment with a very strong housing market, a very strong automobile industry, and these are industries that are normally responsive to the Fed. So, in that way, the Fed is being very successful. But, what I really see is what the Fed is doing. They're trying to sustain the unsustainable. We had a bubble economy develop with this huge speculative move in NASDAQ. Consumer spending rose dramatically. We went to a negative savings rate. We went to over a 400 billion dollar current account deficit. What the Fed is trying to do now is they're trying to respond. They're trying to maintain what really is a bubble in spending. It's not going to be successful.  What worries me is that they've already shot so many bullets responding to what they thought was the bubble in NASDAQ. But really, the bubble was not in NASDAQ. NASDAQ was just a component of the greater credit bubble that hasn't been pierced yet. So, down the road, when the real estate markets slow down and folks are not able to refinance their mortgage, and all of a sudden, we have a contraction of lending and money supply doesn't grow any more, that's when were going to miss the ability of the Fed to lower rates."/>						<outline text="Because, even with Fannie Mae and Freddie Mac, they're able to raise money internationally and, you know, we have these trade deficits and these dollars are just pulled right immediately back into the U. S. financial sector, right back into the securities market.  When that chain is broken, when foreign sources, be it the hedge funds, the leverage speculators, generally, investors, if the foreigners turn on the dollar, then I don't know how this credit pyramid will function."/>						</outline>					<outline text="We're borrowing over $30 billion a month from foreign sources. I'm concerned that there's a lot of speculative money that comes in on a monthly basis, into the U.S., to fund these trade deficits. It believes that it can protect itself with one phone call to J. P. Morgan or to a derivative player as soon as they start to feel weakness in the dollar.  It's like the flood insurance analogy where there's a lot of people out there who believe as soon as it starts raining, the torrential rains begin, that they'll just call and get this insurance or get this re-insurance.  The size of the positions are so large there's just not going to be any way that they can offset this risk to someone else."/>					<outline text="According to Robert Dean, senior VP of market risk oversight at Freddie Mac a competitor of Fannie Mae, &quot;when the biggies (big banks) consolidate they tend to allocate less risk capital to the 'system' than when they were separate... so we are very concerned with the liquidity of the derivatives market because, frankly, if the liquidity isn't there, then it's actually not worth using those markets to hedge in. And quite simply, the reason is that when the liquidity is not there, if you go to the market and try to hedge when dealers don't have enough capacity, you'll just move the market. You'll actually wind up making matters worse for yourself. So we worry about liquidity in terms of whether there's still enough capital being allocated to the system... I think THAT would be our greatest concern because our rebalancing needs are greater than they were a few years ago.&quot;"/>					</outline>				</outline>			</outline>		<outline text="Financial Analysis">			<outline text="Sales"/>			<outline text="&lt;table x:str border=0 cellpadding=0 cellspacing=0 width=512 style='border-collapse:">				<outline text="collapse;table-layout:fixed;width:384pt'&gt;"/>				<outline text="&lt;col width=64 span=8 style='width:48pt'&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 width=64 style='height:12.75pt;width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1989&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1990&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1991&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1992&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1993&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right width=64 style='width:48pt' x:num&gt;1994&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 style='height:12.75pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 style='height:12.75pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 style='height:12.75pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Business"/>					<outline text="Activity&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Retained"/>					<outline text="commitment&lt;span style='display:none'&gt;s&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;20936&quot;&gt;$20,936 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;18114&quot;&gt;$18,114 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;31991&quot;&gt;$31,991 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;64477&quot;&gt;$64,477 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;87440&quot;&gt;$87,440 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;52220&quot;&gt;$52,220 &lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Purchases&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;22518&quot;&gt;22,518&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;23959&quot;&gt;23,959&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;37202&quot;&gt;37,202&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;75905&quot;&gt;75,905&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;92037&quot;&gt;92,037&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;62389&quot;&gt;62,389&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;&lt;span"/>					<outline text="style=&quot;mso-spacerun: yes&quot;&gt;  &lt;/span&gt;Yield (net)&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;9.8799999999999999E-2&quot;&gt;9.88%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;9.8199999999999996E-2&quot;&gt;9.82%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.8900000000000007E-2&quot;&gt;8.89%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;7.7700000000000005E-2&quot;&gt;7.77%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;6.8900000000000003E-2&quot;&gt;6.89%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;7.7499999999999999E-2&quot;&gt;7.75%&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Principal"/>					<outline text="liquidations (&lt;span style='display:none'&gt;gross)&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;11787&quot;&gt;$11,787 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;12220&quot;&gt;$12,220 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;17688&quot;&gt;$17,688 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;37967&quot;&gt;$37,967 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;52365&quot;&gt;$52,365 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;29392&quot;&gt;$29,392 &lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Mortgage sales&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;3036&quot;&gt;3,036&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;5845&quot;&gt;5,845&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;7165&quot;&gt;7,165&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;8807&quot;&gt;8,807&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;6935&quot;&gt;6,935&lt;/td&gt;"/>					<outline text="&lt;td class=xl2330964 align=right x:num=&quot;1802&quot;&gt;1,802&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 style='height:12.75pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 style='height:12.75pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Debt activity"/>					<outline text="(Gross)&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Short-term"/>					<outline text="debt issue&lt;span style='display:none'&gt;d&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;55037&quot;&gt;$55,037 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;94407&quot;&gt;$94,407 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;151223&quot;&gt;$151,223 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;203230&quot;&gt;$203,230 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;288295&quot;&gt;$288,295 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;564014&quot;&gt;$564,014 &lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;&lt;span"/>					<outline text="style=&quot;mso-spacerun: yes&quot;&gt;  &lt;/span&gt;Cost (includes hedgi&lt;span"/>					<outline text="style='display:none'&gt;ng)&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.4599999999999995E-2&quot;&gt;8.46%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;7.8299999999999995E-2&quot;&gt;7.83%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;5.6000000000000001E-2&quot;&gt;5.60%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;3.4299999999999997E-2&quot;&gt;3.43%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;2.9600000000000001E-2&quot;&gt;2.96%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;4.58E-2&quot;&gt;4.58%&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Long-term debt"/>					<outline text="issue&lt;span style='display:none'&gt;d&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;23531&quot;&gt;$23,531 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;19581&quot;&gt;$19,581 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;30234&quot;&gt;$30,234 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;30599&quot;&gt;$30,599 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;46323&quot;&gt;$46,323 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;39238&quot;&gt;$39,238 &lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;&lt;span"/>					<outline text="style=&quot;mso-spacerun: yes&quot;&gt;  &lt;/span&gt;Cost (includes hedgi&lt;span"/>					<outline text="style='display:none'&gt;ng)&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.8999999999999996E-2&quot;&gt;8.90%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.9300000000000004E-2&quot;&gt;8.93%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;7.7299999999999994E-2&quot;&gt;7.73%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;6.2399999999999997E-2&quot;&gt;6.24%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;5.1900000000000002E-2&quot;&gt;5.19%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;6.1899999999999997E-2&quot;&gt;6.19%&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;Total debt"/>					<outline text="issued&lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;78568&quot;&gt;$78,568 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;113988&quot;&gt;$113,988 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;181457&quot;&gt;$181,457 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;233829&quot;&gt;$233,829 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;334618&quot;&gt;$334,618 &lt;/td&gt;"/>					<outline text="&lt;td class=xl2230964 align=right x:num=&quot;603252&quot;&gt;$603,252 &lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;&lt;span"/>					<outline text="style=&quot;mso-spacerun: yes&quot;&gt;  &lt;/span&gt;Cost (includes hedgi&lt;span"/>					<outline text="style='display:none'&gt;ng)&lt;/span&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.5999999999999993E-2&quot;&gt;8.60%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;8.0299999999999996E-2&quot;&gt;8.03%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;5.96E-2&quot;&gt;5.96%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;3.8100000000000002E-2&quot;&gt;3.81%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;3.39E-2&quot;&gt;3.39%&lt;/td&gt;"/>					<outline text="&lt;td class=xl2430964 align=right x:num=&quot;4.7600000000000003E-2&quot;&gt;4.76%&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=3 style='height:12.75pt'"/>					<outline text="x:str=&quot;Average maturity of debt &quot;&gt;Average maturity of debt &lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;tr height=17 style='height:12.75pt'&gt;">					<outline text="&lt;td height=17 class=xl1530964 colspan=2 style='height:12.75pt'&gt;&lt;span"/>					<outline text="style=&quot;mso-spacerun: yes&quot;&gt;  &lt;/span&gt;issued (months)&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;28&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;20&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;16&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;15&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;17&lt;/td&gt;"/>					<outline text="&lt;td class=xl1530964 align=right x:num&gt;10&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;![if supportMisalignedColumns]&gt;"/>				<outline text="&lt;tr height=0 style='display:none'&gt;">					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					<outline text="&lt;td width=64 style='width:48pt'&gt;&lt;/td&gt;"/>					</outline>				<outline text="&lt;/tr&gt;"/>				<outline text="&lt;![endif]&gt;"/>				</outline>			<outline text="&lt;/table&gt;"/>			<outline text="Earnings"/>			<outline text="Return on Equity"/>			<outline text="EBITDA"/>			<outline text="Free Cash Flow"/>			<outline text="PEG"/>			</outline>		<outline text="Technical Analysis">			<outline text="Fannie Mae is held by institutions. It is interesting the size of the open interest in the $20 and $30 out of the money put options. Currently the open interest figures are 27K and 21K  respectively. Even more intriguing that these puts that rely on large movements in the stock are with a stock with a Beta of 0.21."/>			<outline text="With 18K call options with a strike price of $80 expiring worthless on April 22nd it has been suggested that the institutions are writing covered calls and using the money to purchase puts in this way hedging their positions without selling the stock."/>			</outline>		</body>	</opml>