Fannie Mae-No Politics (FNMA)

[kthomp19]

What do you think is most likely to happen? Senior pref conversion?

Yes. That would render the warrants superfluous. I estimate a 75% chance of it happening.

Note that a senior-to-common conversion is something that I do NOT want to happen. It limits the ceiling of the junior prefs to something less than full par value. I would make a lot more money if the seniors are written down.

While I do not want the conversion to happen, I expect it to given the Supreme Court's Collins verdict and the fact that such a conversion nearly happened already (in late 2020).