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  "documentTitle": "Fannie Mae & Freddie Mac (FNMA/FMCC)",
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  "authorName": "William Ackman",
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  "notes": "The slide uses market benchmarks to justify a specific fee level, framing it as a conservative estimate.",
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      "text": "Probability of a draw, credit quality, and impact on mortgage costs are important factors to consider when setting the PSPA commitment fee",
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      "text": "While there is no perfect comparable, we believe a commitment fee of ~25 basis points is conservative in light of available market benchmarks:",
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      "text": "Substantial first-loss private capital makes a draw highly unlikely\nWhile there is no perfect comparable, we believe a commitment fee of ~25 basis points is conservative in light of available market benchmarks:",
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      "text": "If the PSPA commitment fee is too onerous, g-fees and mortgage costs would have to increase to allow the GSEs to earn an appropriate ROE",
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      "text": "(1) Average commitment fee grid for multiyear credit agreements signed in 2023 or 2024 by borrowers with at least an A- rating and a market cap of at least $100bn. (2) CDS spread for five tightest names in the Markit CDX North America Investment Grade Index as of January 10, 2025.",
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      "text": "Revolver Undrawn Fees(1) Credit Rating Undrawn Fee >=AA- or Aa3 0.04% A+ or A1 0.05% A or A2 0.07% A- or A3 0.09% BBB+ or Baa1 0.11% BBB or Baa2 0.12% BBB- or Baa3 0.15%",
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      "text": "Single-Name CDS Pricing(2) Borrower Credit Rating Spread (bps) Berkshire Hathaway AA / Aa2 13.6 National Rural Utilities Coop. A- / A2 20.4 Northrop Grumman BBB+ / Baa1 22.8 Union Pacific A- / A3 22.9 Johnson & Johnson AAA / Aaa 23.1",
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      "kind": "title",
      "text": "Clarify Nature of Government Backstop (Cont.)",
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      "evidence": "table/data: Revolver Undrawn Fees(1) Credit Rating Undrawn Fee >=AA- or Aa3 0.04% A+ or A1 0.05% A or A2 0.07% A- or A3 0.09% BBB+ or Baa1 0.11% BBB or Baa2 0.12% BBB- or Baa3 0.15%",
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