Fannie Mae-No Politics (FNMA)

[blownaccount9]

The idea is to get preferred out of the way so they don’t have to pay the dividend coming out of the restructure AND it increases tangible common equity . I don’t remember what the terms were, but they did this with Citibank back in the day. Unsure what the terms would be this time around or the timing for these events.
https://ypfsresourcelibrary.blob.core.windows.net/fcic/YPFS/Citi%20to%20Exchange%20Preferred%20Securities%20for%20Common,%20Increasing%20Tangible%20Common%20Equity%20to%20as%20Much%20as%20$81%20Billion.pdf

It doesn’t really say if they did the conversion at face value, but I’m assuming they must have offered a pretty good ratio to entice investors to make the swap.