Fannie Mae Preferred S (FNMAS)

[big-yank]

At $3.31 vs. $3.80 as yesterday's closing price, FNMAJ would be the better play for those looking to add shares. The coupon @ 7.65% is almost as hefty as FNMAS, but its par is the same so, if called or liquidated, I don't see much of a difference.

I really get scared by issues with so low a float. I've been burned by that before which is why I initially passed... 21M vs. 289M o/s.

I am very surprised that no momentum has sprung up behind saving Freddie, letting Fannie go bye-bye. Pretty much every proposal on R&R that arises would make Freddie the easier choice to support. The Mulvaney bill is yet another example... it would take FMCC about half the time to build up the reserve against risk-assessed assets from my first pass computations. I did a ballpark for Fannie on the FNMA board over the weekend. Makes the future less politically risky to not kill off both GSEs simultaneously. Might not make the big bank lobbying crowd happy, though, but that could be a plus on the Dem side of the aisle.