Fannie Mae-No Politics (FNMA)

[bradford86]

Fnmas hit 52 wk highs today, admittedly it is higher in the capital structure and a recent i bank report forecasted a scenario where they make money from current valuations. Spspa conversion kind of is the enemy for existing commons. Not sure if the solution here is to write that down to spend the warrant money, but the original cbo report had the spspa getting paid off face and the warrants being worth up to $110b. The recent ibank report did not seem to be very bullish for the existing commons. Mostly forecasted spspa taking a haircut at an 8x earnings valuation. Oof