- Why the preferred shares are a much better deal for investors than the common shares, by the numbers.
- Why some professional investors are sticking with GSE preferred shares, based on the preferred shares' superior position in the event Freddie and Freddie are wound-down or liquidated.
- Why the successful government bailout of American International Group was different from the bailout of the GSEs.
- How the DTA recapture robs one part of the U.S. Treasury to pay another.
- Possible ways forward for the U.S. housing finance market.
- Political pressure on FHFA Acting Director Edward DeMarco.
Long-term investors who ride the shares up might also consider hanging in there for the income. If Fannie were to restore the dividend on the preferred series E shares, investors would receive dividends of $2.55 a share per year, for a yield of 20.8%, based on Friday's closing price. If Freddie were to restore the dividend on its preferred series Z shares, the annual income would be $1.34 a share, for a yield of 43.37%, based on Friday's closing price. Please see TheStreet's previous coverage, for much more information on Fannie Mae and Freddie Mac, including: