NCZ.PA: This 6.3% A-Rated Preferred Stock Suffers From Market Discrimination

Summary

  • Leverage restrictions make any CEF preferred stock relatively safe from a credit perspective.
  • Comparison to bank preferreds through the years.
  • Comparison of yield spreads.
  • Explaining the risks and the mandatory redemption.
  • A look at taxation.
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Swan

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This article was first published to members of my service on 12/11/2022. NCZ-A and NCV-A are 99% identical, so all the logic of the article applies to NCV-A as well.

If we are to look

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This article was written by

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Arbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic.

Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of NCZ.PA either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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