Fannie Mae-No Politics (FNMA)

[Steelhead9]

I have asked five or six times and you have yet to answer: how does the Moelis plan benefit prefs over commons? It envisions a 400% return for prefs and 400-700% for commons (the infamous $8-13 range). If anything that benefits commons over prefs.

You omit the detail of share conversions. If preferreds are $5.10 and Commons are $1.70. Under some perputations of Moelis, The prefered holder takes his 10% haircut to par and is taken to $22.50, then gets the equivalent value in common shares in exchange (say commons have appreciated to $5.00. Each JP holder gets 4.5 common shares in exchange for each JPS. NOT cool!!