Fannie Mae-No Politics (FNMA)

[Donotunderstand]

cancel any owed on Senior Paper

yes - warrants to be sold to Fannie -- not super cheap but less than dilution impact

allow x years for Fannie to raise capital - in interim GOV backs it

then issue paper to raise say 70B for a company earning 10B or whatever a year? (assumes 30B in earnings towards reserves)


seems very doable


(70B assumes that the 50B used to buy warrants (or whatever the amount) is borrowed but not due for 5-15 years)

Summary
There are ways to extend time and get the capital raise to a doable number