Fannie Mae-No Politics (FNMA)

[FOFreddie]

Mr. Market disagrees with you.

The JPS are trading around 8% of PAR and the Commons are trading 700% higher than GB's target price for the GSE equity.

I believe the JPS are worth PAR but I cant ignore what Mr. Market is saying on the relative risk/return of JPS and Common. This is after relentless posts saying that Commons are worthless or worth $ 0.10 max. I have to assume that the potential return for Common is greater that the 12.5 multiple for JPS because all agree that Common are much more risky than JPS.

GB continues to state that Mr. Market is wrong and Mr. Market continues to say that he is wrong. Mr. Market is well aware of GB's opinions on valuation and the cramdown.