Fannie Mae Preferred S (FNMAS)

[big-yank]

There was no relevance today, again. These are no longer coupled. Investors should take note that Fannie Mae commons are trending independent of preferred shares. I wouldn't say that decoupling favors one stock series over the other, as of yet. Time will reveal what the divergence means for investment theses. But my opinion remains that common shareholders are hedging an unfavorable judicial outcome by layering in preferred shares with a high coupon... a winner if junior divvies are restored in some Amendment 3 courtroom victory... as a hedge against an unfavorable verdict that would lead to a liquidation scenario for all shareholders. Pfd shares have a clearcut liquidation preference.

JMHO.