SI
SI
discoversearch

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 : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Madharry who wrote (31379)7/4/2008 11:05:59 AM
From: Paul Senior  Read Replies (2) of 78507
 
Madharry, what are some of these companies that have such preferred yields, and do they have reasonable call provisions for investors?

Would seem to me that if yields on preferreds are much higher than debt (bond) interest, that companies would want to call in or buy in their preferreds, and issue bonds instead. Especially as bond interest is a deductible item, whereas preferred payments are made with aftertax money.

So there's the risk of the preferred being called away that has to be considered, I presume (?).
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext