Banking, finance, and taxes

Federated Vulturing Into Mortgages Via IPO (FII, PNT)

Point Asset Management, Inc. has filed to sell up to $250 million in an initial public offering and it will trade on the New York Stock Exchange under the symbol “PNT.”  Deutsche Bank is listed as the sole underwriter as of now.

It will also be qualified as a REIT, so ownership of common stock by any person is generally limited to 9.8% in value or in number of shares.  It will also be externally managed by Federated Investment Counseling, an indirect wholly-owned subsidiary of Federated Investors Inc. (NYSE:FII).   

Point Asset Management, Inc. is a Maryland corporation that will invest predominantly in agency mortgage-backed securities such as Fannie Mae, Freddie Mac, or Ginnie Mae. It will also be externally managed and advised by Federated Investment Counseling as noted above.

Simultaneously with the completion of this offering, FII Holdings will purchase $25 million of our common stock at the initial public offering price per share in a private placement.  So far, Federated is still down 2% at $41.31.  With a $4.1 Billion market cap, there may be only so much a $250 million IPO can add even it hits all its new investments in mortgages as home runs.

We are careful in calling all of these new mortgage funds "vulture funds" but we also like to call it like we see it.  We also don’t fault vulture funds, and in fact we even like them.  Here are some others:

Jon C. Ogg
February 29, 2008

Want to Retire Early? Start Here (Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

 

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.