Hi sidedraft (from another HUB world).
This is my understanding of the $50 5.10% Fanny Mae preferred. The reason these have a higher value is, of course their $50.00 PFD liquidation value.If and when dividends are reinstated, a great possibility given the earning power, the dividend payout will be $2.55 per annum. At $15.00 PPS this will equal to 19.6% return.
Secondly,
Whereas these are perpetual, the Freddie PFD were recently reclassified as callable and the rate of payout was indexed to a formula using LIBOR 3 mos. rate plus 4.61% or 7.875% whichever is higher. Once you start playing with terms of corporate issued securities, the company enters a slippery slope of possibly extinguishing its value. The Freddies $25 callable 7.875% priced at ~$6.50 will yield 31% at current price were they to recommence PFD Dividends.
Please note that neither security is cumulative.
Nice to see familiar faces.