Fannie Mae-No Politics (FNMA)

[kthomp19]

Not a problem at all. I miss enough things that going to that level of detail is at least as much a sanity check for myself as anything else.

I still think my conclusion holds, though: a voluntary conversion of junior preferred to common (assuming it's even possible) isn't worth considering because it would reduce core capital at a time that increasing it is paramount.

For the same reason I think junior preferreds get their dividends turned back on rather than having them redeemed for the stated value: the latter incurs a far larger immediate cost that cannot be borne easily.

In addition, turning junior dividends back on allows common dividends to be distributed, raising their share price and allowing for faster recapitalization.