Fannie Mae Preferred S (FNMAS)

[brandemarcus]

The less liquid 50's can be redeemed by the government any time, for the high dividend ones like fnmas this is not to your advantage. Fmccl can be bought for less than 6.20 and in your liquidation scenario is redeemed at 50, while fnmas is redeemed at 25 with a value today of 5.08. If you are holding for dividends than yes fnmas might be priced at 30 or higher but not in a liquidation scenario.