Fannie Mae-No Politics (FNMA)

[curious999]

there is another reason ... to raise this enormous amt of $ is going to require the widest investor base possible. and the new pref will have a “fortress” balance sheet which will attract fixed income investors who don’t buy common and potentially convertible investors. in other words, converting $33B of existing jps means $33B less common that has to be raised and, correspondingly, makes it easier to raise the new pref

nomura, by the way, discusses this extensively in their recent rec and moelis in private meetings.