Fannie Mae-No Politics (FNMA)

[Mnemonic]

Hey kthomp,

Does your model care--or do you care--at all about coupon rate if two series are similarly priced relative to par? I owned a lot of odd series before the Supreme Court ruling, then rolled everything into FNMAT and some other high-coupon series when they were around 17:1, but at 9:1 (currently) they're a little less appealing. FNMAO is nearly 17:1.

I'll say that the coupon rates seem attractive to me, even though I'm pretty sure their dividends won't be reinstated. I also expect a blanket 6% rate or something in a damages scenario, so it wouldn't matter much there, either.

What are some situations where coupon rate might matter? Order of redemption? Am I wasting my time with these, or should I be worried about liquidity--trying to unload tens of thousands of shares of FNMAO--if something cataclysmic happens?