Fannie Mae Preferred S (FNMAS)

[rosen62]

5, have you read the details of the plan?

1, Biforcation of bonds - not so easy to startup
What do you mean by this? Are you referring to the bonds the NewCo plans to issue to finance their operation?

2. Common has no voice, so the FHFA 'voice' speaking for them will NEED to give them *some* value. Will they be happy? Who knows, but they better end up with something. More headaches and lawsuits.
Current common stays... half dead. And to participate in NewCo current common will most likely have to pay.

3. CSS may not be ready for a while. End-game for jr. pfds. may also be a year away.... don't spend the profits, yet. No dancing.
According to DeMarco CSS should be operational pretty soon and the HF plan speaks of June 2014 as cut off date.

4. Congress / FHFA / Obama / Press may scoff (some are already) at HF trying to make some coin.
Under the HF plan it's Treasury who makes very larger coin, very quickly.