Fannie Mae-No Politics (FNMA)

[tcj]

This makes solid sense to me. I just get stuck on the idea that a guy like Mnuchin wouldn't try to find a way to make some money for the admin., but maybe that is not the case.

Have you examined the possibility where they settle with prfd's and wipe out common, do a brand new offering under a totally new entity? Not even sure if this is possible, but trying to think about the "black swan" scenario. Similar concern would also be they just dilute the hell out of common. I don't see this, but I spend most of my time looking at what no one thinks will happen in terms of a negative outcome.

On a side note, what would be the downside outlier to owning prf'd right now? Granted it might be a lesser return, but aren't the prfd's basically guaranteed money right now. I don't see a downside in terms of risk.