Stocks quoted in this article:
Fannie Mae (FNM – 88-7/16), Freddie Mac (FRE – 69-1/4), and USA Education (SLM – 66-13/16) (formerly Sallie Mae) have been interesting names of late that have not been mentioned much in the financial press. These stocks have enjoyed solid runs higher since the Nasdaq Composite (COMP – 2624.2) began its latest deterioration in early September.
The aforementioned equities have rallied 67 percent, 55 percent, and 73 percent, respectively, since September 1. Additionally, the stocks have all achieved new 52-week highs today. The hearsay on the Street is that due to huge budget surpluses, the U.S. government will be forced to begin buying the debt securities of these companies when the supply of US Treasurys dries up.