rr0710

Citigroup: Too Big to Fail or Succeed

To take this kind of risk is speculation at best. You can purchase preferreds from non-financial companies with lower yields but at least some reassurance that their cash flow statements can pay the dividend. Has anyone forgotten the moral hazard in these issues? Preferreds may be a good buy for financials, but what's your protection, really? None. Getting seduced by juicy yields is one way to get your head taken off.