Fannie Mae-No Politics (FNMA)

[bradford86]

Yes, my own approach to this was in my own opinion a bit weak and lame for the years leading up to the supreme court ruling in collins v yellen. I never expected the supreme court to get the law so incredibly wrong as it did here.

Since then, prices have collapsed to well below my cost basis and stuck around for nearly two years and counting.

I do not expect these low prices in preference shares to last forever. I believe the Biden administration has set aside a block of time, the next eight months, to address this situation of locked capital structures. Deese is out. Brainard is in. Bernstein is 2 weeks away from being promoted.

Even in the worst case (and in my view unlikely) where nothing happens — the companies continue to retain earnings on their path towards restructuring and ending the conservatorships — where eventually I believe that the JPS are made whole.