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rosen62

12/21/13 3:26 PM

#13672 RE: JosephS #13668

The Srs. have a liquidation preference over the Jrs. If they remain in existence there will always be a chance that the Jrs. will never trade at full redemption value because of the associated risk. We should never count on the GSEs making large profits for eternity. Needless to say, if future problems arise the price will again plummet for this very reason (liq preference of the Srs.)