Fannie Mae-No Politics (FNMA)

[bmp152]

The jr preferred shares (i.e. FNMAS) are perceived as being less risky than common because they are in line to be paid out first in event of liquidation. The caveat is that they have a capped PPS at around $25, while the commons do not have this limitation. Thus, this could explain the discrepancy in PPS movement between the two...more bets on the "guaranteed" money.