Fannie Mae-No Politics (FNMA)

[KenKong]

There is no liquidity in the case of FnF. They are flush ... cash positive.
Definition : Converting Preferred Stock to Common stock typically occurs in the case of a liquidity event. Preferred shareholders commonly have what is known as a Liquidity Preference, which gives them the right to recoup a certain dollar amount before Common Shareholders receive anything.
There is no liquidity event.