Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Very few JPS actually want to be Converted to $FNMA Commons (aka, the bottom of the totem pole). However, it seems inevitable since the GSEs will need to raise approximately $100B and that will be tough to do with roughly $33B in JPS standing in front of them.

If it happens, the offer will need to be juicy (give away more Commons!) in order to entice the Jr. Preferreds to Convert.

Otherwise, most JPS would rather wait so they can rake in their $2+/year dividends

It's a Win-Win situation for the Jr. Preferreds either way. I'm starting to think the JPS are the real Polar Express and $FNMA Commons are just an impostor