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Aug.21
9:24 AM ET
Thursday, 21 Aug 2008
Short Interest in Freddie Mac Doubles

With continued concerns about GSEs, Freddie Mac [FRE  Loading...      ()   ] and Fannie Mae[FNM  Loading...      ()   ], short interest in the pair has been on the rise.  Are shorts betting on one over the other?

Over the past week, both Freddie and Fannie are down ~45%.  MTD they are down over 60% and YTD they are down about 90%.  As they have fallen in the past few months, short interest in the two has continued to rise.  According to data from Thomson Reuters, since May, short interest as a percent of shares outstanding in Freddie has doubled.  Short interest in FNM has also gone up, but has pulled back in the past month (see table below).

Note: The total number of short shares in Fannie has gone down by about 8 million shares.  The pull back is also being driven by a 94 million share increase in the number of shares outstanding.

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