Fannie Mae-No Politics (FNMA)

[FOFreddie]

HI Red Cloud - Take a look at the Warrant Agreement - personally I did not see an anti-dilution provision but not sure. You can access from the websites - I have previously posted them so perhaps others have access to the Agreements. It would seem that the biggest dilution risk comes with earlier and more capital raises. If we can get credit for retained earnings while the recap happens and lower capital requirements then the common is worth more. The other dilution risk will come with a potential JPS to common conversion which of course will be consensual on a series by series basis. This is not a gigantic dilution risk since JPS is only $ 33 bn or so for a $ 300 bn market cap. Biggest risk is early and large capital raises to meet the required ERCF levels which hopefully will be reduced - perhaps via the proposed Reconciliation Bill. This is another reason why the Warrants are important to DJT - how does the UST justify lower cap requirements if the UST does not have significant financial gain from a near term recap?