Replies to post #493691 on Fannie Mae-No Politics (FNMA)

[cooler_heads]

FHFA has their own plan. What makes you think they’d use theirs?

[Donotunderstand]

why is that not NORMAL

over the course of 99% of market activity of 99% of companies - preferred are used and thought of as PAR purchase price and PAR redemption - sale - call and dividends along the way.... a bit riskier than bonds but for healthy companies a way to make 20% more INCOM

preferred shares are income shares (but equity)

based on all market theory (say U of C and the like) the risk reward on preferred shares is closer to that of a bond

common is normal equity risk reward --- with lots more risk and volatility risk and complete reward

think if Amazon and Netfilx and Google and MSFT had issued preferred at PAR 25

why would not common - who took the full risk for no dividends - not get 5 or 10 TIMES the return