Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks again for your reply. I understand your rationale for not seperating the valuation potential for FMCC and FNMA at this point. Of course once we know the capital requirements then the divergence potential would seem to become more concrete.

Would you agree that any new cash raised would be invested in the assets held by the respective GSE and earn a return?

In reality dilution is mitigated by the portfolio return of the underlying assets which becomes part of the income stream to support a dividend yield. Do you agree about that point?

Would you expect FNMA and FMCC to trade higher than the pro-forma book value after a settlement?

Perhaps the largest determinant over pro-forma book value would be the expected dividend yield?