Fannie Mae-No Politics (FNMA)

[contrarian bull]

No one yet has shown me language in the governing documents for the junior preferred issues that stops the FHFA/F/F from converting them in some TBD ratio to common

I looked at a few of my preferred docs - and there is no specific exclusion of f&f converting preferred to common, although some of them say the holder of the preferred does not have the right to convert them to common. It just says they are to be redeemed by payment of $25 or $50 out of available funds, but they don't specify that it MUST be in dollars.

So - it implies that you will get cash. Hmm there we go again with "implicit guarantees". I guess it is up to the lawyers and judges to say whether $50 means cash or not. In my opinion $50 means fifty bucks in US dollars.