Fannie Mae-No Politics (FNMA)

[kthomp19]

Realistically what PPS should we expect after SCOTUS?

It depends on their ruling, of course.

If the plaintiffs get what they want (NWS gone, seniors gone, FnF get a $14B tax credit each, no cash changes hands), I think the commons will pop a bit above $5 then settle down into the high $3s or so once people realize that there is still a lot that has to happen to get FnF recapped and released. One crucial unknown would still be the amount of future dilution.

I expect similar movements on the juniors: a pop to around 60% of par and a drift down to ~45%.