Fannie Mae-No Politics (FNMA)

[The Man With No Name]

That's not quite right...
JPS are under governments seniors AND warrants.

Wrong.

It may come as a shock to you but the warrants are pari-passu with commons.

This is basic stuff. Surprised you don't know this. Well, maybe not.

The hierarchy is as follows:

First: SPS
Second: JPS
Last: Warrants for commons and Commons.

Hint, SENIOR Preferred then JUNIOR Preferred

Before conservatorship, the Junior Preferreds were the only Preferreds, so no designation was needed as they all ranked pari-passu with each other. After conservatorship, the government didn't want to be pari-passu with the (now) JPS, so they created SENIOR.

First comes SENIOR, then comes JUNIOR and then comes everyone else. That's the pay schedule.