Replies to post #589461 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Warrants are associated with a debt.

I wish I knew where this bit of common nonsense originated. It is wrong for two reasons:

1) The seniors aren't debt, they are equity.
2) The warrants are not associated with the seniors at all.

The seniors being "repaid" at 10% has nothing whatsoever to do with the warrants.