Fannie Mae Preferred S (FNMAS)

[jwnoble3]

Not based on what I just read in the new FRE investor presentation (see post 905 from 4cent). Page 8, TSY is going to allow the GSEs to carry net worth reserves (sounds like in addition to loss reserves). For Freddie its $3B (starting 2013) then reduces by $.6B ea year

I was looking at callable dates to look for any equity correlation.

My thinking outloud...allow GSEs borrow at low rates (against net worth) and retire jr's over next 5years (based on call dates).

Gov't has 79.9% warrants on common.

Interesting that FRE current net worth is 1.096B + 3B allowed next year. Currently ~4.2B Jrs are callable. Most likely just a coincidence.