The 5 Comparisons That Prove This Preferred From Wells Fargo Is Undervalued By At Least 10%

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About: Wells Fargo & Company (WFC), WFC.PL, Includes: WFC.PQ
by: Arbitrage Trader
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Summary

5.5% perpetual current yield with no call risk is nowhere to be found from a bank investment grade preferred stock.

WFC-L is a clear arbitrage opportunity compared to any financial preferred stock and is lagging all WFC preferred stocks.

With so many overvalued fixed income instruments, many of which trade with negative yields, there's a lot of hedging reaction available to capitalize on the alpha.

What is WFC-L

Figure 1. Details and statistics of WFC-L.

We have written an article about WFC-L (NYSE:WFC.PL) and its potential for price growth in the past. Here we are shortly describing what's