By Dan Wilchins - Analysis
NEW YORK (Reuters) - By Freddie Mac's own admission, it has a negative net worth -- the latest reported net market value of the mortgage giant's assets is negative $5.6 billion.
To some investors, that means its shares should be trading closer to zero. Bears argue that the company's bonds are a reasonable investment given the U.S. government's increasingly explicit support, but its shares are a more questionable investment.
Freddie Mac's shares moved closer to zero on Wednesday, dropping nearly 20 percent to $6.49 after it posted a much-wider-than-expected quarterly loss of $821 million.