Fannie Mae-No Politics (FNMA)

[lookaheadfuture]

THEN come the MBS holders whose paper carries a guarantee from Fannie or Freddie. They rank below junior preferred shareholders because their "expectations" for payment are not secured by equity, just the assurances of the GSEs.

Why do you say that MBS are not secured by equity? MBS are asset backed securities.

In liquidation (which will never happen) preference is given to the risk averse.

So it should be Secured Creditors (includes MBS), Bonds, Senior Pref, Pref, Common.

However, this administration may very well do things differently since they can and no one will call them out on it.