Fannie Mae-No Politics (FNMA)

[chessmaster315]

Its a good theory, unfortunately, its refuted because pre conservatorship the commons were worth more than the preferreds, and post conservatorship we could well see that again. So the preferred/common ratio that you speak of will likely be obliterated post conservatorship and that could be happening early. Its a bad idea to sell your commons to buy preferreds in hope of profiting in the so called "ratio reversal".