Freddie Mac-No Politics (FMCC)

[obiterdictum]

In general, the junior preferred series of GSE stock have less of an upside than the common in the market in the best conditions and being non-cumulative there is no dividend payback possible if the courts decide favorably for the plaintiffs. On the other hand, unlike the dilutive possibilities facing the common, the junior preferred have a protective fixed liquidation value against dilution and will receive dividends ahead of the common if there is a release from the conservatorships or if there is a liquidation.

This is the last that can be said about this bet from here.

Prospectus information (liquidation value, dividend rates, risks, etc.) about the junior preferred can be found here:
http://www.fanniemae.com/portal/about-us/investor-relations/stock-information.html