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Another blow against the income-seekers, Capital One (COF) announces it will redeem $3.65B of...

Another blow against the income-seekers, Capital One (COF) announces it will redeem $3.65B of trust preferred securities. The high-cost paper is in the process of being called by most financials as it will no longer by allowed to count towards capital buffers. (PR)
Comments (3)
  • Big Ben strikes again.
    16 Nov 2012, 09:50 AM Reply Like
  • Not really Bernanke. This is about new Dodd-Frank and Basel capital requirement calculation methodology. As the post says, these securities no longer count toward regulatory capital, and being as expensive as they are, it makes all the sense in the world to retire them.
    16 Nov 2012, 10:13 AM Reply Like
  • It has been profitable trading in and out of these since 2008. Before that I had no idea what they were. Still, they are a few that you can still buy at around par of $25.00 that will pay you 6.5 to 7% until they are called. The fact that they will more than likely be called puts a floor under them. Not huge returns but a possible alternative to corporate bonds.

     

    Symbols? MER-E, C-V, CFC-B, CFC-A, MSZ,
    16 Nov 2012, 11:39 AM Reply Like
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