I'm not going to buy F&F preferred. They're not trading where they should be and could correct without notice. The non-accum preferred get nothing and the accum preferred maybe waiting for several years if everything goes to the gov.
On the good side:
A. Freddie was created to handle low income housing (sub-prime) and may not have to pay most of what it owes back.
B. Fannie owes the majority of that money and not Freddie.
C. Freddie, but not Fannie, could get enough money from the BAC and other banking law suites to pay what they owe.
So Freddie is the preferred of the preferred, but there's still too many "ifs" to take a needless risk. With the low volume of preferred, it could tank like an expiring option.
I was holding CRBC accum preferred when they unexpectedly paid up right b4 the merge this winter. That was nice...
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