Fannie Mae Preferred S (FNMAS)

[rosen62]

It's good for us.

Although argentines are cleaning up their act because the country needs to borrow again from international markets. Not that they suddenly believe in the rule of law. It's just self-interest. Domestic reserves are down to 25/28bill and they are facing a bumpy road ahead. Just last week they successfully negotiated with the Paris Club and the last remaining issue are the holdouts. IMF most likely told them to wrap up the 2000/2001 default if they want to be taken seriously. In addition, these steps may try to appease the SCOTUS which can send the country into technical default with an unfavorable ruling.

In any case, that last IMF warning is what matters to us. It means "don't mess with investors. Respect contracts (rule of law)."