Fannie Mae-No Politics (FNMA)

[The Man With No Name]

I'm very well versed between commons and prefs. I've been in this closer to 15 years and have heard it all, alot of doom and gloom - yet, here we are. Prefs currently sit at the bottom of the barrel with commons, so no one has any point.


My assumptions are based on conservatorship definition, while others here point to chapter 11 reorg. Which it is not. A reorg can happen under both terminologies to facilitate different outcomes. Neither dictates or has to even resemble the other if you look at the differences between conservatorship or a chapter 11. Those here saying the same are risking their own money thankfully. Lol

Correction, commons sit at the bottom, JPS are one step above the bottom.

Capital restructures are all analogous.... bankruptcy, conservatorship or any else.

Priority matters in all. And Enterprise Value determines where it all shakes out.

In this case, commons have zero rights and JPS have limited contractual rights. But priority in the waterfall is where JPS has strength. For the government to extract every bit of profit they can out of a release, JPS will have to be addressed.