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New offerings summary:
The ghosts of SIVB and SBNY preferred stocks
The failures of two large regional banks were felt by the preferred stock niche, and in an extreme way we don’t normally get to see: instead
2 Preferred Stocks 'Disappear,' 4 Offered
Summary
- As March 2023 comes to a close, we observe four new preferred stock / ETD offerings during the month, with yields ranging from 6.625% to 9.5%.
- Here is a comparison against the highest quality preferred stocks in our coverage universe, as ranked by our internal “CDx3 Compliance Score” metric:
- CDx3 preferreds ranked 10 out of 10 are meanwhile selling for an average discount to par of about 7.3% and offer an average current yield of 6.3%.
- Past preferred stock IPOs now trading below par: a look at recent par crosses.
Whether you are the kind of investor who sticks with preferred stocks with a CDx3 Compliance Score rated 10 out of 10, or whether your portfolio has room for 9-score-and-lower securities, stay tuned for future articles recapping new IPOs and interesting preferred stock activity that we notice here at the CDx3 Notification Service.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such 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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