Replies to post #642805 on Fannie Mae-No Politics (FNMA)

[GAK-]

I agree there will be a conversion (I own FNMAS, by the way), I just disagree with you on the timing. I expect the conversion to come in late 2021.

[RumplePigSkin]

there will be a conversion offered to the juniors. One generous enough to get them to accept (else it would be pointless).

kthomp, a conversion relative to what to define “generous?” A conversion relative to common SP appreciation? Or relative to prospective GSE future performance?

I highly doubt anyone is going to say, “ya know what, let’s convert JPS so they outperform relative to commons.” That’s not how it works. Also, JPS has no bargaining chip. Accept the fair terms relative to fair market value or get no dividends per the distribution guidelines of the cap rule. Take it or leave it.

Please don’t bring up Lamberth ...