Fannie Mae-No Politics (FNMA)

[Louie_Louie]

Pref's gonna hurt more as this inflationary environment gets going....

Since the dividend on preferred stock is usually a fixed amount forever, once the preferred stock is issued its market value is likely to move in the opposite direction of inflation. The higher the rate of inflation, the less valuable is the fixed dividend amount. If the inflation rate declines, the value of the preferred stock is likely to increase, but no higher than the stock's call price.