Fannie Mae-No Politics (FNMA)

[JOoa0ky]

Here is a link to the Series AA prospectus. It is non-convertible and non-cumulative.

On page S-7 (page 11 of the pdf) it says "The Preferred Stock will not be convertible into, or exchangeable for, shares of Citigroup common stock". This clearly did not stop Citi from offering a voluntary exchange! Thus the argument that FnF's prefs have similar non-convertability language in their circulars does not mean they cannot be offered a conversion or exchange later. I can't tell you how many times I shot that argument down, but this is the best proof yet. (I'm not saying you have made this argument, I'm just putting it there for the interested reader)

Yup, same as frannie... non-convertible and non-cumulative but did not prevent citi from "offering" conversion. It was up to each holder to decide if they wanted to convert at offered terms.

Some may not like the terms and choose not to convert but please be aware that if the largest pref holders choose to convert, the liquidity for the few remaining ones will be piss poor if you plan on trading them afterwards.

That was a valid concern at the time for those citi holders who did not want to convert.