Eurasian Oil & US Mortgage-Backed Securities
Peace through MBS Purchases
As Trump continues his relentless marketing campaign for all things American, it appears his diplomacy in Eurasia not only won political victories, but a financial one, too.
Fannie/Freddie IPO Announcement
On the very day the Media announced a plausible truce between Ukraine and Russia and likewise Azerbaijan and Armenia, another major news item hit the wire: the IPO of the Fannie Mae and Freddie Mac, ending nearly twenty years of ignominious conservatorship and a blight upon America's capital markets.
Peace Pays
With a peace deal, Russia can freely market her oil abroad. This means, however, Russia now has a windfall in trade surpluses that up until now, either went to the war or Soviet allies.
Furthermore, Azerbaijan's Aliyev no longer has to fear sanctions and losing market access for his oil. He can repress, within limits, his opposition and have no fear of American reprisals.
Eurasia Picking-up Where China Left-off
With a commitment from Putin and Aliyev to allocate a portion of their significant oil surpluses into American mortgage-back securities, Trump now has enough private-market demand from sovereign wealth entities to allow American bankers to market Fannie and Freddie stock.
One may rue, however, that the US must seek such blood-soaked money to prop-up her mortgage debt markets.