Fannie Mae-No Politics (FNMA)

[kthomp19]

Dilution dilution dilution... that's why common shares are down... capital raise and warrants... maybe $5/share short term and $10-15/share in years... then adjust for probability of wind down vs. recap... trading about where it should be.

What explains the junior preferreds trading at 30% (or less) of par? The possibility of wind-down with the senior preferreds still on the books (meaning zero for junior preferreds and commons)? Or just the chance that if par is ever reached it will take a very long time and junior preferred dividends may never be reinstated?