Fannie Mae-No Politics (FNMA)

[camaro4me]

Fantastic post Chess

It looks like FNMAS is one of the preferreds in that "libor catch 22" category. This is another good reason to favor the commons over the preferreds: Interest rate risk. If they end libor when interest rates are at or near zero, the interest rate for dividends could be only 1 or 2 percent. That low dividend rate would drive the pps down..no one would deliberatly want to buy a "dividend" stock at such a low rate.