Fannie Mae-No Politics (FNMA)

[kthomp19]

Just gonna see if I can eke out a little extra for damages if/when it ever comes.

If your plan is to maximize return based on the jury's award, you shouldn't buy FMCC or any Freddie juniors. Instead get the cheapest par (stated) value that you can in Fannie series.

Based on the plaintiffs' proposed allocation plan:

FMCC holders get around 5 cents per share.
Freddie junior pref holders will get around $1.00 per $50 of stated value (1 share of a series like FMCCT, 2 shares of a series like FMCKJ).
Fannie junior pref holders will get around $1.34 per $50 of stated value (1 share of a series like FNMAN, 2 shares of a series like FNMAS).

All classes should get post-judgment interest of around 5.5-6% annualized, but that's unlikely to be more than 12 to 18 months' worth.