Fannie Mae-No Politics (FNMA)

[Commons_Cancelled]

Makes you wonder if JPM and MS will advise the GSEs to have the Treasury Convert their Sr. Preferreds to Commons. They can then re-IPO the Treasury's shares (maximizes Treasury's investments), eliminates the SPS on the GSE's balance sheets (which is huge), and then the NWS excess dividends go back to the GSEs ($125B).

This is an instant Recap scenario, which makes everyone's job that much easier and may also be the failsafe scenario assuming Trump loses in November.

No wonder the Market is starting to understand that FNMA Commons may actually be over-valued at their current price.

#NoBuenoAmigos