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. [View news story]
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?
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. [View news story]
4 Stocks With Rapid Dividend Growth Undervalued By Graham [View article]