Fannie Mae-No Politics (FNMA)

[kthomp19]

makes no sense to have all of these various pref issues outstanding post recap ... the structure will be much simpler

How do you think the really low-div series will be dealt with? Freddie has several series that would pay dividends well under 1% of par value if divs were to be turned back on right now. Example: FMCCM, $50 par, $0.19 divs per year.

The fact that the market prices it at $8.25 right now, while higher-div series are mostly between $9 and $10, tells me that the dividends might not matter as much as I once thought. Someone paying $8.25 for FMCCM is doing so almost solely for the place in the capital structure given the tiny dividend.