I bought some FMCKJ at $3.20. The common could very well get wiped and the preferred survive or not. Not a terrible risk $3.20 to make $25 plus dividends maybe.
"Fannie and Freddie cannot simply disappear. The companies have a combined $5.2 trillion in assets. Considering the face value of the junior preferred as compared to total assets, it is clear that the preferred shares can gain tremendous value with incremental operating improvements at the GSEs."