Fannie Mae-No Politics (FNMA)

[betahighlander]

i have a solution that no one seems to consider.
With the idea that New Investors need to be safe entering this space.

GSE could issue. Cumulative PFD stock to raise money with a PIK or paid in kind dividend if the reserves are not enough.
GSE are successful and will continue to be successful. This option would make it safe for Big money to buy.
These would also be callable/redemable so the GSE could pay them off once reserves are in excess of requirments.
This is safe for new money/ invbestmemt grade. has a return
Is this dilutive- Possibly yes. however a 3-4% stock dividend is NOT that dilutive. and the company Captital structure is safe. And if a little dilutive so what. Stock always survives. NO donuts. and the ability to buy back the pfds is always there when good times return.
Safe for investors, safe for stockholders, safe for RE Markets. Stable.

But hey what do i know

Keep in mind the conservator could have issued stock early on and the NWS would never had been necessary. NEVER.