Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Going to zero via receivership or being heavily diluted through equity raises as part of a recap and/or junior pref conversion are clear risks that beset the commons. The first of those applies to the junior prefs as well.

Excellent reply! I couldn't agree with you more. I don't think either Commons or Preferred will be "cancelled" ; however, the risks are significantly higher for shares without Contract Rights. And then you add in warrant dilution and the picture gets even muddier for FNMA.

Most Preferred holders I know are supportive and want Commons to do well (since they may very well get converted into Commons). I was just surprised to come here and see so many posters calling for "cancelling" Preferred shares, when in fact they should be more worried about Commons getting cancelled!