InvestorsHub Logo
Followers 0
Posts 5082
Boards Moderated 0
Alias Born 08/26/2012

Re: sebCS post# 374137

Monday, 12/26/2016 6:39:10 AM

Monday, December 26, 2016 6:39:10 AM

Post# of 796273
Regarding new share issues, you asked: "doesn't that make investments into the current commons and preferreds worthless?"

No, absolutely not. It simply requires that dividends get restored for the class of shares IPO'd. Both GSEs historically issued new preferred share offers to raise needed capital. The great likelihood is that new issues would be preferred offers since I believe FNMA's registration filing limits its authorized shares to something close to current shares outstanding.