Fannie Mae-No Politics (FNMA)

[contrarian bull]

I wondered why F&F don't buy back their junior preferred right now on the open market. They could reduce that debt by 75%.

I assume that somewhere in the PSPA it says they can't buy back their own junior preferred just like they can't buy the seniors. And if word got out they were buying it - the price would likely jump to the face value overnight. But it would be a nice move if they could!

Fannie Mae "the company" would buy out p shares pennies on the dollar and then issue new circulars to raise capital if needed.