Banks and Insurance Companies issue non-cumulative preferred stock.
While dividends are non-cumulative, dividends are qualified for preferential tax treatment.
While shares are investment grade, they are on a negative credit watch.
Aspen Insurance Holdings LTD (NYSE:AHL) has priced a new issue of preferred stock.
The issue, of course, is non-cumulative and is low investment grade (note that both major ratings agencies rate it low investment grade, but both are on negative credit watch).
We expect that this issue will trade tomorrow (Wednesday) with the OTC Grey market ticker in the chart below.
AHL is a fairly large insurer with total assets of around $13 billion.
The company has 2 other preferred issues outstanding which can be seen here. Potential investors need to compare all 3 issues to find the one that makes the most sense to them.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.