Fannie Mae-No Politics (FNMA)

[mrfence]

What your saying might be relevant if changes to the capital structure could be made while in conservatorship however MC states clearly that it's up to the GSEs to raise their own capital to meet the proposed capital rule post Conservatorship under consent decree. There will be milestones to meet by way of the decree. It's pure fantasy that somehow preferred issues would stumble into any situations receiving some extrodinary benefits under this scenario. In fact, it's likely dividends would continue to be denied until the capital rule was met in full. Until then preferreds would continue trading sub par while commons appreciate parabolically based on intrinsic valuation realization. Bottom line... There's no such thing as Santa Claus so he's certainly coming down any preferreds chimney.