Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Several Average Joe's are posting about the Preferreds an awful lot lately. I'm starting to think more than a few of them have Rotated since they can't seem to stay focused on Commons any longer.

They should be taking this time to crunch the numbers in regards to the amount of dilution that's going to be required to get the GSE's Capital to the required level. I think we are still in the $100B ballpark.

Hopefully the GSEs can do the equity raise in tranches so it doesn't come pouring down on the Commons all at once. Either way, there will be a significant over-hang of new equity for a long while which will suppress Commons' price for the foreseeable future.