Replies to post #751303 on Fannie Mae-No Politics (FNMA)

[5bagger]

GM Bondholders got a shaft in the capital stack too

Common didn't fare well either.

UBS / CS was a political takeover and they threw some under the bus.

A little different with GSEs - we do know that WANTED to do r-ship in 2008, 2009, 2010 but couldn't / wouldn't as politically untenable.

Ain't no different now, with r-ship.

Now, could they wipeout commons with a conversion of the PSPS? Maybe. Could they also wipeout, with some fancy number calculations, the JPS. Harder to do.

Look at the CBO report from a couple of years ago and they laid out some scenarios. They were all over the board and they didn't know then and don't know now how that would play out.

We do know earnings were strong since that last back of the envelope; i.e. much harder to wipe out JPS in 2023.