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Strategies & Market Trends : Value Investing
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To: Madharry who wrote (72810)5/17/2023 4:25:04 PM
From: Spekulatius   of 78673
 
JXN thought it was interesting that they issued a preferred with a dividend that was non cumulative. wondered why they would do that and why people would buy it.

The preferred replaces a bond in their Holdco. Financials almost always issue non-cumulative preferred because they get better regulatory treatment from a capital/ ratings perspective (doesn't count as debt).

I think it was a smart move from JXN perspective. Why people buy these I have no idea - my guess they are seeing the yield and buy it unchecked. It really does not matter unless it does (See CS AT1 bonds....).
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