9 Healthy, High-Yield Bank Preferred Stocks To Buy Now [View article]
I hold BBT.PB which has been in decline in recent days post its dividend payout.
Is there some word out on the street that the three BBT preferred stocks in issue, all of which are trading at a premium due to their high coupon, are going to be called sometime soon I wonder?
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
It's my understanding that the non-paying shares will not recommence paying until April 2012 at the earliest. What is more, even the payers (those regarded as debt) (F, H and L) are now trading with a possibility of default priced in. Preferred shares only pay dividends if there are sufficient residual profits from which to pay them and the market considers this a risk, particularly in light of RBS losses in Ireland and the rest of Europe, let alone the US market.
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
egf7
This is an interesting insight.
Are you saying then that in your view the current BUYING activity on these shares is simply from those who had planned to flip them before April 28th? And this is not the execution of the Tenders by RBS.
Also, this is NOT buying by folks who think that these Prefs are a long-term BUY based upon RBS fundamentals in spite of no dividend for at least two years from today other than for the three? must pays RBS-F H and L.
I would agree that certain issues will drop significantly post tender deadline as there will be almost no market left in them but the low priorities which are must pays and will be mostly still there might do better.
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
Please explain why the Series R, for example, are now trading at a premium of $.09 per your response.
Elsewhere you have expressed an interest in the Series L shares which are well down the waterfall. Is this the attraction, as they will remain liquid as compared with those at the top of the acceptance level waterfall where liquidity will be compromised as it was on the Citigroup tendered Pref shares where there was hardly any residual stock left to trade?
Was thinking of taking a(nother) "punt" at RBS preferreds with the expectation RBS will indeed recommence dividends in two years. If RBS recommences dividends on common shares will be closed "window" be shorter than two years maybe?
Most Series are now trading in excess of the Tender prices. Do we know why this is? Are other investors now seeing the potential for capital gain or are the buyers simply RBS under the tender? I'm confused!
9 Healthy, High-Yield Bank Preferred Stocks To Buy Now [View article]
Is there some word out on the street that the three BBT preferred stocks in issue, all of which are trading at a premium due to their high coupon, are going to be called sometime soon I wonder?
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
This is an interesting insight.
Are you saying then that in your view the current BUYING activity on these shares is simply from those who had planned to flip them before April 28th? And this is not the execution of the Tenders by RBS.
Also, this is NOT buying by folks who think that these Prefs are a long-term BUY based upon RBS fundamentals in spite of no dividend for at least two years from today other than for the three? must pays RBS-F H and L.
I would agree that certain issues will drop significantly post tender deadline as there will be almost no market left in them but the low priorities which are must pays and will be mostly still there might do better.
Royal Bank of Scotland - Time to Buy Preferreds? [View article]
Elsewhere you have expressed an interest in the Series L shares which are well down the waterfall. Is this the attraction, as they will remain liquid as compared with those at the top of the acceptance level waterfall where liquidity will be compromised as it was on the Citigroup tendered Pref shares where there was hardly any residual stock left to trade?
RBS - Preferred Tender Announced [View instapost]
Most Series are now trading in excess of the Tender prices. Do we know why this is? Are other investors now seeing the potential for capital gain or are the buyers simply RBS under the tender? I'm confused!