Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks for the constructive post Louie

I noticed that JPM issued a series on non cumulative preferred at 4.75% in October 2019. With interest rates at current levels it may be conceivable that new preferred could be issued around the 5% level or better. I wonder if it makes more sense to call the existing JPS and issue new preferred at the 5% level. Possibly less dilution for UST and existing common shareholders?

Any consideration is a risk sharing type security which would be treated as regulatory capital. During 2009 many financial institutions issued "COCO" contingent debt that becomes equity depending on certain finanical ratio triggers

https://www.investopedia.com/terms/c/contingentconvertible.asp

Thanks again for sharing your perspective