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Preferred Stocks And Baby Bonds: Redeemed Issues

Aug. 02, 2018 12:18 AM ETSOV.PC, SAN.PB, WFC.PJ, BAC.PD, BML.PI, WHF4 Comments


  • Brief coverage of four recent preferred stock and baby bond redemptions.
  • A glimpse at how they traded and how the companies refinanced, if they did.
  • List of products by the same issuers which are still outstanding.
  • This idea was first discussed with members of my private investing community, Trade With Beta. To get an exclusive 'first look' at my best ideas, start your free trial today >>


There is no incredible value created by the series of articles covering fixed income products whose Call Option was finally, or perhaps timely, exercised by the issuing company. However, it turns out that not all of us have the resources and time to keep track of their portfolio, thus we are continuing our coverage of these events.

Santander Holdings USA - SOV-C

  • Redemption: Santander Holdings USA, 7.30% Dep Shares Series C Non-cumul Perp Preferred Stock (SOV.PC)
  • Original Call Date: 5/15/2011
  • Call Date: 8/15/2018

Also, today SHUSA announced that its Board of Directors approved the redemption of all outstanding shares of the Series C Preferred Stock, and all outstanding shares of the related depositary shares, each representing a 1/1000th ownership interest in a share of Series C Preferred Stock ("Depositary Share").


The Series C Preferred Stock will be redeemed on August 15, 2018.

Source: PRNewsWire.com - SOV-C Redemption Press Release

Below you can see a chart of SOV-C's last days on the exchange:

Source: Barchart.com - SOV-C Daily Chart (6 months)

We previously brought your attention to this one as it could have been a good addition to a "pinned to par" income portfolio, but it never really gave anyone the chance to buy the dip and give it a shot.

After this one and several other issues were redeemed by Santader (SAN), the following products remain available:

- Santander Finance Preferred, Float Rate Non-cumul Guar Series 6 Preferred Stock (SAN.PB)

The preferred above was recently removed from the iShares US Preferred Stock ETF (PFF).

Wells Fargo - WFC-J

  • Redemption: Wells Fargo & Co., 8.00% Dep Shares Non-cumul Perp Cl A Preferred Stock Series J (WFC.PJ)
  • Original Call Date: 12/15/2017
  • Call Date: 9/17/2018

Wells Fargo & Company (NYSE: WFC) today announced it will redeem on

Trade With Beta

These products are our bread and butter and although we do not want to brag, our community at 'Trade With Beta' always manages to spot news about Redeemed issues before the majority of market participants. And this is only part of the services we offer to our Subscribers, so feel invited to join us and explore the marketplace!

This article was written by

Arbitrage Trader profile picture

Day trader whose strategy is based on arbitrages in preferred stocks and closed-end funds. I have been trading the markets since I started my education in Finance. My professional trading career started right before the big financial crisis of 2008-2009 and I clearly understand what are the risks the average investor faces. Being a very competitive trader I have always worked hard on improving my research and knowledge. All my bets are heavily leveraged(up to 25 times) so there is very little room for mistakes. Through the years my approach has been constantly changing. I started as a pure day trader. Later I added pair trades. At the moment most of my profits come from leveraging my fixed income picks. I find myself somewhere in between a trader and an investor. I am always invested in the markets but constantly replace my normally valued constituents with undervalued ones. This approach is similar to rebalancing your portfolio and I just do this any time there is some better value in the markets. I separate my trading results from my trading/investment results. I target 40% ROE on my investment account and since inception in 2015, I am very close to this target.

My main activity is running a group of traders. Currently, I have around 40 traders on my team. We share our research and make sure not to miss anything. If there is something going on in the markets it is impossible not to participate somehow. Some of my traders are involved in writing the articles in SA. As such Ilia Iliev is writing all fixed-income IPO articles. This is part of their development as successful traders.

My thoughts about the market in general:

*If it is on the exchange it is overvalued and our job is to find the least overvalued.

*Never trust gurus - they are clueless.

*Work hard - this is the only way to convince yourself you deserve success.

*If you take the risk it is you who has to do the research.

*High yield is always too expensive.

We are running a service here on SA. It is a great community with very knowledgable people inside. Even though we are not in the spotlight as often as we would like to our articles' results are among the strongest on SA. You can always contact me to share some of our articles and best picks so far.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (4)

Thanks for the update.
Glad to see WFC and BAC calling in higher rate pfds.
Gridbird profile picture
AT, I will be very pleased come next months call review article you arent writing about my AILLL, ASRVP, or HE-U being redeemed. I would not be happy about that!
GARAK profile picture
You've improved this list and made it more helpful to me by including the original call date plus a few other tidbits. Thanks, and please keep it up!
Very informative. Thanks a lot!
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