This ‘Trump trade’ could wreck U.S. housing finance, warns Pimco

The Tell

‘Don’t fix what’s not broken,’ says Pimco about Freddie Mac and Fannie Mae’s role in housing finance

Published: May 15, 2025 at 6:07 p.m. ET

Privatizing Freddie Mac and Fannie Mae might benefit speculators, but it could hurt taxpayers and the mortgage market, says Pimco. Photo: AFP via Getty Images

Of the popular “Trump trades” this year, one hinging on privatization of housing giants Freddie Mac and Fannie Mae could be particularly problematic for U.S. housing finance.

That’s the view of a team at Pimco, one of the world’s largest asset managers, and a significant owner of Freddie FMCC and Fannie FNMA mortgages bonds with government backing.