Analyst Sees Little Risk for Fannie Mae.(Brief Article)

New York -- A.G. Edwards & Sons analyst Matthew Park said his company is maintaining its buy rating, despite recent controversies and uncertainty, because Fannie Mae is expected to continue playing a value-added role in the large and politically sensitive residential mortgage market. In a report, he also said that at current prices, the stock offers "an attractive risk-reward tradeoff."

"We believe that Fannie Mae will emerge from its current accounting controversy as a better-capitalized company that can deliver attractive returns on shareholders' equity, most likely at the expense of a reduced growth rate of its assets," the report said.

As far as regulatory reform for the government-sponsored ...