Replies to post #594336 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Not convinced. If JPS ask for 2x par, then Treasury can walk and just offer better terms in SPO while keeping JPS...

Yeah I'm not convinced either. I'm just trying to wrap my head around that other poster's reasoning. 2x par would have me dancing in the streets. Of course, so would 1.1x par...

Curious to see what wrinkle they come up with to wrangle JPS conversions...

Given that Calabria, Mnuchin, and Phillips (twice) have all mentioned it, it has to be on the table at this point. And it would have to be favorable to the juniors or they wouldn't accept.

The whole "juniors are capped at par" argument is complete bunk. The juniors have more upside, and the commons more downside, than most would have us believe.