Fannie Mae Preferred S (FNMAS)

[big-yank]

Several days have seen preferred S/P move up when commons moved down, and vice versa. The two previously almost always moved up or down in tandem. Preferreds have traded at almost an exact 2/1 equivalency since late last summer. The spread has slowly begun to creep up to above that correlation in the last few weeks. The best signal of change is volume, which exceeded 2 M shares, today, pretty unusual for this issue.

The amount of divergence is not so consequential as to call this a trend with any predictive value. It is simply something to watch and, if you are long FNMAS, celebrate as/if it continues.