Replies to post #440233 on Fannie Mae (FNMA)

[curious999]

the prefs are totally mispriced, particularly older issues & 50's, and have been, jmho, for long time

but particularly crazy last few weeks b/c of tax selling, hedge funds who closed/closing shops and are foreced sellers, and redemptions at fairholme.

they SHOULD be trading at discount to par for all reasons you so clearly state, but believe "fair value" is where they traded in february before d.c. circuit fiasco

[HoldenWalker99]

Possibility of receivership/wind down is the only thing keeping preferred where they are. Any recapitalization plan would require retirement of preferred shares especially when that could encourage settling the lawsuits.