Eurodollar University HOLY SHT! Did You See What JUST Happened to Freddie Mac?!
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Jan 19, 2026 Steve Van Metre, a keen market analyst focusing on housing and credit cycles, joins the discussion on Freddie Mac's shocking 25% stock crash. They dissect how fears over cash use and a slowing economy have sparked heavy selling. Steve highlights rising delinquencies and shrinking job hours as indicators of greater credit risk. A shift in investor sentiment, from peak cycle optimism to risk aversion, is driving urgent sell-offs. Ultimately, they connect these trends to broader risks across the credit cycle and labor market.
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Freddie's Fall Signals Bigger Macro Risks
- Freddie Mac's stock plunge reflects deeper risks around its cash buffer and the labor market, not just politics or an IPO noise.
- Jeff Snider warns that if Freddie must spend cash on policy-driven purchases, it loses the cushion needed for a downturn.
Delinquencies + Slowing Jobs Raise Fragility
- Steve Van Metre links Freddie's vulnerability to creeping delinquencies and a slowing labor market that reduce its ability to absorb losses.
- He says lenders need cash buffers now because the economy is moving in the wrong direction.
Rotate Away From Freddie If Cash Is Reallocated
- Avoid holding Freddie stock if you expect the GSEs' cash margins to be repurposed for policy purchases without a reserve.
- Jeff Snider argues investors are understandably exiting because Freddie could be left unable to absorb mortgage losses.