Fannie Mae (FNMA)

[kthomp19]

The federal government via the Net Worth Sweep and a myriad of other unsavory anti capitalist/shareholder actions may have seriously put a cold chill on prospective new investor money coming into this public/private partnership.

I agree that new investors might be very reluctant to put money in.

I just think that that will lower the per-share SPO price to the point where their return is good enough to overcome that reluctance. And that price could easily be under $5. The more reluctant new investors are, the worse it is for the existing common.

Otherwise, if FnF cannot raise capital at all, they are stuck in conservatorship until at least 2028 (the fact that the warrants expire in 2028 is a coincidence) and can get out then only if Treasury cancels or converts the seniors.