Good morning Guido - I keep seeing people bring up the conversion issue as if it were or were not tied to the cases. I am not sure why as I don't think anyone ever said that any plaintiff has asked for conversion as a remedy. I certainly have never said that. As a practical matter, all I am expecting is that the NWS gets invalidated and the money returned to the GSEs in one form or another. If that happens we all benefit - common, preferred, Fannie, Freddie, man, women and child. If it comes out better than that for all of us - so be it - but at least return the excess and for pete's sake - issue amendment 4 and close out the seniors.
As a preferred holder - as I said on an earlier post today - I don't expect to ever see a dividend. For the cap raise - I would expect that the seniors would be cancelled and the juniors converted. Then they could issue new preferred at a lower rate if they need to do so. And as a common holder I don't want to see our precious cash spent on redemption. And I don't expect the commons to see a dividend to 2023-24. But I am hoping for significant appreciation in the common.
I think we are all on the same side - hope this helps.
Nats
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