Fannie Mae-No Politics (FNMA)

[kthomp19]

for those who haven't noticed yet: Trump is pushing our stocks! This was his 2nd tweet within days in which he praised the companies to the max and talked about the end of conservatorships. Without need. Just like that.

I wouldn't be surprised if there were two more tweets from Trump to come:
I will be signing an executive order shortly to release Fannie and Freddie from their Conservatorships.
And:
I signed an executive order today to release Fannie and Freddie from conservatorships. SAFE AND SOUND, RESPECTING THE RIGHTS OF SHAREHOLDERS.

And yet, none of that is inconsistent with a senior-to-common conversion. Neither does either of those signal a higher share price in the future.

The rights of the existing common are nothing. Bottom of the capital stack behind senior pref LP that exceeds FnF's net worth.

A new term might have to be coined: "conflation risk". Assuming that recap/release must raise the share price is liable to be a very expensive mistake.