Fannie May / Freddie Mac Bonds & Preferred Stock

Discussion in 'Wall St. News' started by Comptalk, Aug 18, 2008.

  1. If the gov't bails our Fannie May and Freddie Mac. What happens to their Bonds & Preferred Stock? The common stock is dead, I know that, but would the debt still be paid off?
  2. If the common stock gets wiped out, I would expect bond and preferred stock holders to also get hit. They would probably return something but well less than par. As a guess, less than 50 cents on the dollar.