Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks Canceled

I thought Nomura had the convert preferred at 3.5 but at 3.5 % - please issue away. This is basically a 28 priortized PE - common would benefit significantly if JPS could be issued at 3.5% since convertible preferred would be issued at a lower rate. Assuming a 10 PE on the common - anything issued at 7.5% or better is a no brainer. Just need enough Tier 1 equity and the rest at low coupons. Remember a 10 PE assumes a 10% return on shareholders equity which can be paid out as dividends or retained and reinvested in the portfolio on a leveraged basis.