Replies to post #16830 on Fannie Mae Preferred S (FNMAS)

[big-yank]

FNMAS has prescribed redemption periods with very narrow windows where preferred stock can be called for redemption. The next one is in December, 2018... then no opportunity until December, 2021. A recapped GSE will call bonds that are accumulative, when ever pfd's are recommenced. Since FNMAS is non-cumulative, they will not be among the first tranches called for redemption. However,your higher par will, of course, rise to a higher S/P value or liquidation preference value than FNMAS, depending on what cost at which they are purchased.

I would be totally satisfied with a $22 "consolation prize" on $3 shares held for a few years, only. If commons fare better, yet, more power to them. It is not a contest for me, just a balancing of risk vs. reward for an investor at my age with my somewhat conservative tolerance for risk.

JMHO.