Fannie Mae-No Politics (FNMA)

[YanksGhost]

Regarding JPS... you might consider the effect that near zero interest has on valuation of juniors like FNMAS and FNMAT with high coupon yields. Especially when they have limited 5 year call windows. Fixed income investors looking at 10 Year T-notes @ .75% yields would be NUTS to convert Juniors to common shares ala Moelis 1.0 when then have an 8X yield curve advantage by staying put upon release.

The silver lining is that Moelis is dead and dilution of commons just caught a very real break. JPS recovers a four-bagger @ par at the point of redemption call. Plus liquidation P. The P & common shares are no longer aligned for rotation. Each now has their own destiny.

IMO.