Floorless Preferred Stock/Debenture Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Floorless Preferred Stock/Debenture

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: semi_infinite who wrote (1409)	7/13/2002 3:31:57 PM
From: Allen Furlan	Read Replies (2) of 1438

For those following this issue a question? Eventually a floorless convertible death spiral has to end, but how? The short sellers cover at pennies on the dollar and then what? The convert holders exercise their option and receive many many shares of stock for their equity. The corporation should not cease to be viable if it is a profitable enterprise. So the legacy common stock holders own a tiny portion of the corporation and their shares are doomed to languish. But how about the bond and preferred share holders. Since they have an entitlement to a set price return on their investment at some agreed to time in the future their investment in the long term should be sound if the company is sound. But Mr. Market will punish these bonds and preferreds because of fear. Would such investments be sound speculations during the death spiral? Does anyone have the background to recall the workout of bonds and preferreds in an actual case history. My interest is specifically on aes pref c which I own.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next