Fannie Mae-No Politics (FNMA)

[Latergater]

With a utility model the most likely outcome and the returns for both classes pretty similar, it makes logical sense to be higher in the capital structure. In case the utility model does not happen, or there is serious dilution after the warrants are exercised, they are placed in receivership or many other negative outcomes that would really hurt the common share price, it is safer to be higher in the capital structure given the similar returns.