Fannie Mae Preferred S (FNMAS)

[NobodyFromNowhere]

The path forward for an investor is a 3 step process
1. Sell shares for whatever you can get
2. Get on knees in prayer position
3. Thank God that you got more than $0.00 and that you live to see another day
Many forget that these companies have 30 year contingent liabilities on their trillions in MBS. Right now US Treasury is saying, okay, no need to hold capital, we'll cover that. Given this outstanding guarantee it is very difficult for shareholders to argue that they have any residual claim. Especially common s/h given that there is still $180 billion in Sr. Pref along w/ those pesky Jr. Pref's that trade at only 15 cents on the dollar.

I have the spread trade on Long FNMAS / short FNMA
It's a race to zero for both securities, but they are so far away from parity right now that there is a ton of money to be made on the spread.
Sorry fellas, all future Washington and Vegas trips are cancelled. Find a new dream, dreamer.