Fannie Mae Preferred Stock, 4.11% Perpetual

Fannie Mae Preferred Stock, 4.11% Perpetual, represents a class of equity securities issued by the Federal National Mortgage Association, commonly known as Fannie Mae. As preferred stock, it provides shareholders with priority over common stockholders in terms of dividend payments. Holding a fixed dividend rate of 4.11%, it appeals to investors seeking steady income, though dividends are subject to the issuer's discretion and financial health. This asset does not have a maturity date, distinguishing it as perpetual preferred stock, which implies that it may pay dividends indefinitely without redemption. Fannie Mae plays a pivotal role in the U.S. housing finance system by providing liquidity, stability, and affordability to the mortgage market. Through securitization, Fannie Mae buys mortgages from lenders, which helps to ensure the availability of mortgage funds at stable rates. The Fannie Mae Preferred Stock is a reflection of this larger function, supporting Fannie Mae's ability to operate and fulfill its mission. It is critical in financial markets for investors aiming to diversify their portfolios with an asset linked to the housing and mortgage sectors.