Fannie Mae (FNMA)

[contrarian bull]

The value on the budget was $184.7 billion for dividends on the senior preferred stock. When I first saw this it was so close to the outstanding balance I thought maybe they were going to let them pay it down over the next 10 years.

But the number does not quite match - so now I think they are expecting an average net profit from F&F of $18.47 billion per year that treasury could sweep - over 10 years = $184.7 billion. And the balance due would remain just over $190 billion when the senior preferred shares expire in 2028. In 2028 F&F would be expected to pay them off in full all at once.

No news here.

I don't know how they estimate the value, it changes every year, it's back to the FY2016 level. The preferred stock would at least go down by the 5.1B expected draw from Treasury.

I'm confused about why the preferred stock would go down if there was a draw for the DTA's. Wouldn't the liquidation preference go UP if they had draws of $5.1B???? It would only go down if F&F were allowed to pay back what they drew - which so far Treasury and FHFA have not allowed.