Paulo

Bank Bailouts and Trust Preferreds: Still Too Much Risk Here

Difficult to make sense out of all of this.
Let me take a risk and add to the confusion -- the traditional preferreds might turn out to be canaries in the coal mines in terms of an eventual rebound.
They might go up quickly and before common equity when (or should I say if) light appears at the end of the tunnel.

Bank Bailouts and Trust Preferreds: Still Too Much Risk Here

So where is the storm in Canada over preferred shares in general or even specifically? Or are you just anticipating a reaction to one or two posts?

Look Around - The Credit Crunch Has Arrived

So keep your hedges on, eh!!

Estimating the Risk in Citigroup Stock and Bonds

Well, I just put my money where my mouth is -- just bought KBE (fully hedged by SDS which I already owned)

Estimating the Risk in Citigroup Stock and Bonds

I am a retiree who was just talking to his wife over supper about precisely the issues this article deals with, but this was with regard to the banking sector as a whole (with some attention to Europe and Canada).

Precision is not possible and when it becomes so, the markets will arrive at an appropriate value. That could be up or down from the present banking sector valuation.

How about buying that sector and using an ultrashort ETF to partly protect the decision ?

Not ideal, but I do no think I want to spend my retirement auditing the banking sector of the developed world in order to correctly time a moment to purchase (not that I think that can usually be done).