How is Trading at agencies like Fannie/Freddie?

I know the agencies have trading desks but I can’t find much info on them. How do they differ from S&T at a bank? How’s the comp and hours? What exactly is their function?

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Based on the most helpful WSO content, here's what you need to know:

Fannie Mae/Freddie Mac Overview

Function: Fannie Mae and Freddie Mac are involved in multi-family lending and play a significant role in the marketplace. They purchase loans from DUS (Delegated Underwriting and Servicing) listed banks and then securitize them via Mortgage-Backed Securities (MBS). They also make money on servicing and securitization.

Sales and Trading (S&T) at Banks

Roles:
- Sales: Pitch the firm's ideas to clients to sell securities and build relationships with clients.
- Trading: Involves trading securities, either for the client (agency trading) or with the firm's capital (proprietary trading).
Hours and Lifestyle:
- S&T workers typically put in around 50-60 hours a week, with no weekend work, making the lifestyle quite manageable compared to Investment Banking (IB).
Compensation:
- At the analyst level, you can expect to make around $120k in the first year. As you move up, the figure increases significantly, with managing directors making anywhere between $500k - $1m.

Comparison with Fannie Mae/Freddie Mac

Trading Desks: While the specific details about trading desks at Fannie Mae and Freddie Mac are not provided in the knowledge base, their primary function revolves around purchasing loans and securitizing them via MBS, which is different from the broader range of securities traded at banks.
Compensation and Hours: The knowledge base does not provide specific details on compensation and hours for trading desks at Fannie Mae and Freddie Mac. However, given their specialized role in the mortgage market, it is likely that the structure and lifestyle could differ from the more general S&T roles at banks.

For more detailed insights, you might want to explore specific forums or threads dedicated to Fannie Mae and Freddie Mac on Wall Street Oasis or other finance-focused platforms.

Sources: Sales and Trading - A Comprehensive Guide, Sales and Trading - A Comprehensive Guide, What do S&T people actually do?, https://www.wallstreetoasis.com/forum/real-estate/fannie-maefreddie-mac?customgpt=1, Fixed Income Sales and Trading 101

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