Replies to post #16260 on Fannie Mae Preferred S (FNMAS)

[loobeyondbm]

1:1?

This is totally nonsense. See what government did with preferreds in Citi case. Preferreds were converted on RV/(Common price traded before announcement).

Because of valuation gap, hedges longed Citi preferreds and shorted common and were squeezed very hard for several days.

[44centsAKAchoccake]

The ongoing litigation is brought by the preferred holders.