Tweedle Dum

Hey, if Freddie Mac can do it, why not Fannie Mae? The agency will issue $7 billion of non-convertible preferred stock this month so it can “conservatively manage increased risk in the housing and credit markets,” in the words of its announcement. In another conservative move, Fannie’s common-stock dividend will be cut from $0.50 to $0.35 per share. Given the appetite for Freddie’s recent stock offering, it’s reasonable to expect this one to be oversubscribed, too.