Fannie Mae Preferred S (FNMAS)

[brandemarcus]

1. Who cares what the treasury was thinking in 2008. That's the same thinking in the 10k's that warns people all equity(including pfd) is unlikely to have any value.

2. Yes resumption of divi's is a way off, but my point was there is no need for the forced conversion that most on this board assume is necessary.

3. People tend to underestimate the probability of unlikely events. That's why the jr pfd was so low in price for some time.
That's why the market cap of common (fmcc) is so low right now.
Long jr pfd -short common - could be just as dangerous as the Howie Hubler trade that cost Morgan Stanley in 2007. He sold protection on larger amount of A Tranches to fund the premiums paid to buy insurance on smaller amount of b tranches of cdo's.