The Trump administration’s planned initial public offering (IPO) for Fannie Mae (OTCQB: FNMA) and Freddie Mac (OTCQB: FMCC) will not occur this year, according to Michael Burry, the investor and hedge fund manager who gained prominence from the book and film “The Big Short.”
In a Substack posting titled “’The Toxic Twins Recurrence,” Burry predicted the earliest date for the IPO would be 2027. He cited the continued tumult in the housing market coupled with “inflationary” tariffs and an Iran war for creating an economic environment that makes an IPO impossible.
“Higher rates may transmit to the mortgage market and impact an already shaky housing market,” said Burry, noting that elevated home prices and rising mortgage rates are “locking supply out of the market and allowing homebuilders to build too many low-quality homes in bad locations.”
Burry added that the housing market was “in for a long winter” if current economic conditions remain or worsen. While predicting an IPO will eventually take place, Burry warned it would happen after a “final steep, windy and rocky climb.”
Fannie Mae and Freddie Mac are both traded on the Over-the-Counter markets. Last August, President Trump hinted at moving a merged Fannie and Freddie to the New York Stock Exchange with the ticker “MAGA,” but to date has done nothing to bring that concept to reality. Over the past six months, the value of both stocks declined by more than 70%.
Photo courtesy of The Motivational Speakers Agency
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