Fannie Mae-No Politics (FNMA)

[LuLeVan]

I agree. But my post is about the current price shifts in Fannie/Freddie JPS which are obviously based on the expectation of pre-judgment interest on Lamberth damages. Freddie JPS don't get PJ interest, while Fannie JPS do.

FMCKJ is currently the cheapest of the three most liquid JPS (FMCKJ, FNMAT, FNMAS). Historically, FNMAT is the cheapest. So if you own FNMAT (or FNMAS), it is worth switching some of your holdings to FMCKJ. The difference in price is sometimes significantly greater than the difference in Lamberth damages (including interest).