Fannie Mae-No Politics (FNMA)

[kthomp19]

fmcci has trash dividend terms.

Yeah, FMCCI's dividend terms are almost as diametrically opposite of FNMAT's as it's possible to be.

FMCCI's is defined as (3-Month LIBOR + 1.0%) / 1.377, which works out to about 0.97% right now.

FNMAT's is a fixed 8.25%.

I know you, along with another poster I also highly respect on SA, think that dividend rates won't matter in the end.

As you know, I'm agnostic as to dividend rates until I think the endgame is coming, at which point I will be willing to pay around a 5-7% premium for the mid-divs (over the floaters) just in case div rates really do matter, but that's a relatively minor consideration. I don't think FNMAS/FMCKJ/FNMAT will outperform the other juniors to the extent that their current market prices would indicate.