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FFH has a $36bn bond portfolio that last year earned them a 1.5% yield. With the 2Y at 4.42% today and their duration hovering around 1Y, its not crazy to think that FFH could earn
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<p>FFH has a $36bn bond portfolio that last year earned them a 1.5% yield. With the 2Y at 4.42% today and their duration hovering around 1Y, its not crazy to think that FFH could earn $1.25-1.5bn annually from this. They should do a minimum of $600mm ebit annually from their insurance operations (I expect closer to $800mm annually) and then they have Digit IPO, RFP sale, and C&F sale all in the next quarter or two. Float is $28bn (plus $4bn from Digit and $3bn in their Middle Eastern insurance business) Market cap is $12bn today....<br /><br />What is the market so afraid of today? </p>
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