Fannie Mae-No Politics (FNMA)

[FFFacts]

People don't understand the importance of the capital stack in a reorganization. See what happened to the AHT conversion recently. 1 preferred for 5.8 commons. At exchange the offer was almost equivalent to "par" but the discount in preferred shares was less than 40%. Exchange offer was voluntary but before it was hostile, no common votes required, only a tender offer. About 30% voluntary tendered. What happens to commons with the dilution? It goes down short term when the exchange offer is made.