Replies to post #615916 on Fannie Mae-No Politics (FNMA)

[kthomp19]

Preferred gets par or close to par and disappear. That’s it.

Yes, them disappearing is the whole point of the conversion. It adds $33B to CET1 capital and makes the re-IPO much easier.

After that, the converted prefs get to participate in any appreciation to the common share price.

Commons can be purchased on applicable exchange at market prices

This is true, but what does it have to do with anything?

[Commons_Cancelled]

Correct! After the JPS get Converted to Commons, they disappear and then get to realize all of the gains Commons get thereafter.

It's a great world for Jr. Preferreds!