Citigroup TARP warrants heading to zero

A lot of people have made a lot of money buying TARP warrants issued by the large financials in conjunction with their financial crisis bailouts, but those issued by Citigroup (C +0.4%) are turning out to be poor investments at the moment.

The A warrants struck at $106.10 and expiring in January 2019 were  originally auctioned off by Treasury at $1.01 each in late 2011. They're now going for just $0.64 as the stock ($47.80 at last check) does little this year and the erosion of the time value picks up pace.

The B warrants struck at $178.50 and expiring in October 2018 are down to $0.0345 vs. their auction price of around $0.80.

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Comments (5)
  • chammond63
    , contributor
    Comments (136) | Send Message
    I've taken a hard look at BAC, WFC, and AIG warrants in recent weeks..but I won't be looking at these anytime soon lmao
    17 Jun 2014, 03:08 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (11349) | Send Message
    ...and five years ago Citi was obviously going to fail.


    By 2019 Citigroup will be earning $14 per share.


    The "A" TARP warrants are a complete goldmine.
    17 Jun 2014, 03:38 PM Reply Like
  • JeffA65
    , contributor
    Comments (353) | Send Message
    I didn't know warrants are publicly traded. What symbol are they and what exchange? Are there any other warrants with lower strike prices? What's so special about warrants? Couldn't you just buy a call option instead? Not sure what the difference is.
    17 Jun 2014, 03:50 PM Reply Like
  • charliezap
    , contributor
    Comments (2276) | Send Message
    Warrants usually have a longer maturity than options. Warrants are issued by the company, which issues new shares upon exercise. Options are created and sold by traders.


    For more on differences, see:


    For a chart and symbol (the Citigroup warrants are traded on the NYSE) see:
    17 Jun 2014, 11:51 PM Reply Like
  • Rohit SSS
    , contributor
    Comments (635) | Send Message
    a warrants are crazy cheap and buy of lifetime, seth klarman huge holder
    22 Jun 2014, 08:19 AM Reply Like
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