Fannie Mae-No Politics (FNMA)

[familymang]

The bear case is that all litigation is fruitless and the status quo lasts for another 15+years of organic earnings retention, at which point the GSEs are recapitalized (organically) and the NWS simply turns back in line with the last PSPA amendment.

The hope is that any one admin between now and then would like to monetize the GSEs, as no one has access to ANY GSE funds prior to that point in time. A simple NPV will tell you that $200b+ of value today (assuming snr pfd conversion), + a perpetual commitment fee, is more enticing in value than an annual $25b NWS turning on in 15+ years from now that is unaccessible to any admin prior.