Fannie Mae-No Politics (FNMA)

[kthomp19]

If JPS rises to $25 (par) and commons fall to 10 cents (Glen Bradford forecast), FNMAS:FNMA could rise to 250:1.

At some point the market could begin to anticipate this, and the "usual channel" might be left forever.

I agree here. I think the next major catalyst is Lamberth, though, and that stands to benefit both the prefs and the commons.

I plan to unwind the trade well before any major events that could affect the prefs and commons unequally. 2 months or so, maybe 3.

If the administration wants to get the ball rolling before the midterms, as Diane Yentel said she wanted in the Brookings panel, even 2-3 months might be too late though.