Fannie Mae-No Politics (FNMA)

[kthomp19]

And I also said "may" for the juniors.

This is the crux of my misunderstanding. Outside of receivership, what mechanism is there to wipe the juniors? All the way to actual zero.

In fact, what mechanism (again outside of receivership) is there to force the juniors to take a haircut? I can see them voluntarily taking a small to medium one to get recap/release done; I'm just referring to a situation where they are forced to.

As long as common holders retain their shares, even if they are diluted to practically worthlessness, they aren't impaired.

Agreed. If the commons are worth anything at all post-restructuring, the juniors should be money good.

A long runway indeed.

That's certainly a risk here. Even if the juniors cannot go all the way to zero outside of receivership, nothing says they can't get close.