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Bank bonds have returned 8.1% in 2012, beating the fixed income offerings of the rest of U.S....

Bank bonds have returned 8.1% in 2012, beating the fixed income offerings of the rest of U.S. industry, according to BAML. The paper's popularity may show U.S. regulators have succeeded in creating solidly-capitalized institutions (FITB today became the latest to redeem preferred shares) - great for bondholders, but for stockholders maybe a different story.
Comments (3)
  • WhataPick
    , contributor
    Comments (3) | Send Message
     
    Congratulations to 5/3. This has to be a positive, showing that 5/3 continues to dig itself out from a very deep hole. Still has a ways to go to insure confidence with it's owners.
    11 Jul 2012, 12:39 PM Reply Like
  • bbro
    , contributor
    Comments (9323) | Send Message
     
    The whole point was to save the banking system not the equity investors...
    11 Jul 2012, 12:42 PM Reply Like
  • kctrader
    , contributor
    Comments (2) | Send Message
     
    It would seem to me that the equity holders would be better off if FITB no longer needs to pay the high rate on the preferred issues. Is there a FITB non-callable preferred out there?
    11 Jul 2012, 05:08 PM Reply Like
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