David, refer to your zero coupon bond example.
You're solving for PV. When T increases, PV decreases.
With the Ackman plan, ie, retain capital for years in order to recapitalize, the T increases for a pfd shareholder to realize value.
This may get deleted, I know some don't like me.
I preached this value rotation from pfd to commons, just after the ruling.
David, you agreed with me then. Not sure, I guess you tried to switch from common to pfd to get better relative value.
That is my opinion. I own some FNMAS. Took the trade with a stop loss at 3.70. Still holding, but I prefer the mega upside in commons