Fannie Mae-No Politics (FNMA)

[godzirra]

Par value has no meaning here, it's liquidation preference that matters. You can review the Fannie Mae Preferred prospectus for each outstanding issuance here:

https://www.fanniemae.com/about-us/investor-relations/stock-information

Per the Series F prospectus (ticker symbol FNMAP) the relevant excerpts are as follows:

Securities Offered: 12,000,000 shares (assuming the Underwriters do not exercise their overallotment option) of Variable Rate Non-Cumulative Preferred Stock, Series F, no par value, with a stated value and liquidation preference of $50 per share.

Preferences: The Preferred Stock will be entitled to a preference, both as to dividends and upon liquidation, over the common stock (and any other junior stock) of Fannie Mae. The Preferred Stock will rank equally, both as to dividends and upon liquidation, with all other currently outstanding series of Fannie Mae preferred stock.

Optional Redemption: On March 31, 2002 and on March 31 every two years thereafter, Fannie Mae will have the option to redeem the Preferred Stock, in whole or in part, at the redemption price of $50 per share plus the amount that would otherwise be payable as the dividend for the quarterly dividend period ending on the redemption date.

Liquidation Rights: In the event of any dissolution or liquidation of Fannie Mae, holders of the Preferred Stock will be entitled to receive, out of any assets available for distribution to stockholders, $50 per share plus the dividend for the then-current quarterly dividend period accrued through the liquidation payment date.

The contract pretty much lays it out in black and white. Preferred has to be paid before common receives anything and Fannie Mae can't redeem for under liquidation preference.