Fannie Mae-No Politics (FNMA)

[kthomp19]

Let it be known that I have once again joined the ranks of the common shareholders. I just rotated 5% of my junior pref position into commons: 1% FNMA and 4% FMCC. I chose that split because only FMCC is in Lamberth's class, but FNMA tends to slightly outperform FMCC in normal times.

At a FNMAS:FNMA ratio of 7.5:1, I thought it was a good time to rotate some over. I had mentioned 8:1 to 10:1 in the past, but I think AGTHX has been the common seller over these last few weeks, and they should soon be running out of common shares to sell.

I expect a common bounce (relative to the juniors) to 5:1 or so, perhaps even higher. That's my planned exit point, to rotate back into the juniors.

Let's see what happens.