Fannie Mae-No Politics (FNMA)

[bradford86]

In my view what is going to happen as part of this recap and release the most likely scenario is fannie and freddie will work with jps holders to convert them to common shares after the us treasury gets out of the way blocking the companies capital structures from laying siege to all their earnings forever. The second alternative would be just for the jps dividends to turn back on at that point when the companies start paying common dividends — which they will need to in order to attract 3rd party ipo private capital for the government to sell their stake

Two paths to par in my view. I see a 0% probability of redemption for cash.

My perspective is backed up by the government’s cbo report where they acknowledge that receivership is the only way to screw jps which have anti dilution protection and dividend preference to common shares