Fannie Mae (FNMA)

[Donotunderstand]

I own both
started 100% common
Now 3:1 JPS

I have no desire to hurt common - and I suggest even the most devoted believer in JPS does not have the angle to gain by harming commons

1. 15 years ago - anyone could buy JPS for hope of FACE and common for hope of say 20 or 30 or 40
2. JPS was priced noticeably above common and had a ceiling of say 8X - where common could go 20-50 times price
3. NOW it is different
4. JPS at current prices is say a possible 16-18 X and common can be 10-25- 60 X

JPS holders take the lower potential gain - from a sense of added potential to get paid. Some think its absolute that JPS is paid and likely common are diluted. Some like me are not so sure JPS are paid (no payment yet and its 15 years!!) and not sure the LP/SP will be converted to common and cause massive dilution

All is equity with different risk and return profile and no one knows if any one of us will ever see a gain