Replies to post #470194 on Fannie Mae-No Politics (FNMA)

[curious999]

not only does no cash leave the balance sheet, it's $30+ billion that does not need to be raised making the capital raise that much easier

[YanksGhost]

<< This is what would happen if the juniors were redeemed for cash >>

I think you are wrong; I belueve that preferred stock is a credit to cash when initially sold and a debit to cash if redeemed or converted. It also is one of the four components of core capital as you have previously observed, and conversion to a 1 cent par common share would not offset a preferred share's value.

https://budgeting.thenest.com/record-issuance-common-preferred-stock-27734.html