Fannie Mae-No Politics (FNMA)

[DumbDumberDumbest]

Hedging a Common with a Preferred is ridiculous, because there are no risks whatsoever in the Common Stocks.
-Cancellation: a Conservatorship is not about cancelling hugely profitable companies.
-Dilution: HERA doesn't allow to exercise the warrant, only authorized to protect the taxpayer. Also a nonconvertible P cannot get converted to C, besides it doesn't increase Capital.

Therefore, you are just adding up a Fixed Income Security (Preferred Stock) to your portfolio, which shows a lack of financial knowledge due to all of the above, and also taking into account they are gonna be released from Conservatorship on the count of 3.

1,2,.............