Fannie Mae-No Politics (FNMA)

[FOFreddie]

Thanks Robert

TH quote

" As long as interest rates stay high, this net income will continue to boost Fannie’s profits, and grow as its shareholders equity grows."

110 Bn X 5% = $5.5 bn in more earnings
200 Bn X 5% = $10 bn in more earnings

This is why the SPS needs to be voided either at inception or in the future. This will all accrue to common shareholders. As the song goes - "Time is on my side" as long as the SPS gets voided at some point - hopefully at inception and the SPS is limited to the initial $ 2 bn.