Fannie Mae Preferred S (FNMAS)

[NobodyFromNowhere]

Perry will engage investment bank to find buyer for his Fannie position. He won't be able to sell in the open market

It will put an overhang on trading of the shares until he finds a buyer or ultimately just sells a little every day over the next several years

Given that this trade has taken down hedge funds like Claren Road, Perry, Ackman, Berk, etc. Just not sure who is left to want to carry the bag?

Retail bag.............

Berkowitz has cash, but already has 20% of his mutual fund in this trade. I'm pretty sure regulators would force him to shut down if he dug himself any deeper into this situation. Maybe Perry can get Ackman to buy. Could be a decent deal for Ackman to lower his cost basis - if he can buy these non cumulative pfds for pennies.

Updated valuation goes back to Late 2010. 50 cents. That is a technical valuation only. There are really no fundamentals anymore. Tough to give a value. You can pay 50 cents a share upfront but then pay $2 a share over 10 years in hopes of getting paid out $25 per share eventually.

Move along folks, nothing to see here.