Fannie Mae-No Politics (FNMA)

[Bodach]

Preferred shares are better to own, imo, if there is a restructuring of FnF. The preferred shareholders would get paid ahead of the common shareholders. That's why they're being talked about so much in the press. It's a fools errand, in my opinion. A sudden mass press campaign to glorify the preferred shares was coupled with the many other factors of the 1.47 year high on the 21st crash down. I believe the whole idea that the preferred are the way to go is a symptom of an attempt to keep the common under a dollar. If they end up coming out of conservatorship after payment in full, then the commons are the way to go. Higher reward.

The risk of the looming wind down is the only reason they are safer.

I'm not a financial advisor or anything, but that's my opinion on the matter.

Would it be a good move to own fnma preferred shares besides the common? I know it has been discussed but please help with the decision.