Fannie Mae-No Politics (FNMA)

[bradford86]

It is possible for the senior preferred to convert while still attracting new money

I think that is where this is heading

Preferred outperform commons and commons may have some upside. If Tim Howard is right that they cannot just obliterate commons and raise new money — Treasury and FHFA are in the drivers seat and can be mindful of their conversion mechanics

In such a scenario commons could be worth like $1-2 maybe? I dont know why the government would give them much more than they have to in order to attract capital.

This Calhoun event is months of hard work coming to fruition