Fannie Mae-No Politics (FNMA)

[Steel Penny]

Int Rev Code (Rev Rul 77-201) says that bonds or preferred stock of a corporation are not ordinarily considered substantially identical to the common stock of the same corp. If, however, either the bonds or preferred stock is convertible into the stock of the same corporation the it is necessary to look at the relative values, price changes and other circumstances which might make the securities substantially identical.

So, the short answer is no, they are not the same - unless they are convertible and then the answer may still be no. Since I don't own any FNMA preferred, I don't know if there is a convertibility provision. Others may know.

I think I'm looking to next week with F&F.