GSE exit from government conservatorship could enrich speculative investors in their common and preferred equity, including Bill Ackman who has loudly advocated for their release on Twitter. Privatization was a putative goal of the first Trump administration, but fairly little progress was made, in part due to large structural difficulties in accomplishing the goal, including the need for enormous amounts of capital to back the GSEs were they to go private. Some of those obstacles have lessened since the first Trump administration ended.

Fannie and Freddie's equity both trade in the mid $4 range at the time this market opened, compared to about $1 at the recent lows during the Biden administration, and $31 that Bill Ackman suggested as a most likely IPO price.

Resolution will be based on my personal judgement, and I will not trade in this question. Generally an event will count as a "YES" if it ends some or all of the existing government conservatorship and creates a clear path for private investors to be able to receive future cashflows resulting from the GSEs' future profits. Examples would include a "recap and release" plan and an IPO of the GSEs. If it becomes impossible for such a plan to be achieved by the expiration, I will resolve "NO".