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Congrats on the nice play. I was not allowed to purchase the Lehamn preferreds in candidate accounts since they were not BB or better. It seems that you can buy exhcnage traded securities of any grade, but not when you have to go through the bond desk for purchases.
If the company can restructure outside of BK, what happens to CIT-Z?
Dave S
What is confusing is the resulting impact on CIT-Z
In any case the common seems likely headed to pennies with an occasional short spike every once in a while.
A reorganization inside our outside BK is going to be much tougher for CIT now that they used a lot of cash to pay off bondholders in August and also pledged all non-indebted assets to guarantee the usurious loan that they obtained in August.
They have much less room to maneuver now.
CIT may hand over control (and equity) to bondholders:
http://www.marketwatch.com/story/cit-group-may-hand-control-to-bondholders-wsj-2009-09-29?siteid=yhoof2
Congrats on a great call on CIT-A. A real home run!
I wonder if we are coming to an end of the runup in fixed income paper such as the Trust Preferreds. If Rates are headed up from here, Preferreds and Bonds may take a beating.
At least with 9 dogs you are nice and warm. I have trouble trying to deal with the trhee that we have.
Any thought on ABN Amro securities?
http://www.reuters.com/article/marketsNews/idCNWLA368220090917?rpc=44
Sold the remaining balance of my CIT-A today only to have it
spike at the close. Always works that way.
Any thoughts on exit / sales criteria?
Colonial BancGroup Files Ch 11
<<http://finance.yahoo.com/news/Colonial-BancGroup-files-for-apf-896745773.html?x=0&sec=topStories&pos=main&asset=&ccode=>>
What is different in these versus the other ABN trust preferreds?
Purchased some ABN-PE at 9.6 on the fall-off in here.
What do you think this means for the preferred?
I took a gamble and purchased a lottery ticket on FBS-A at 9.55 for a few hundered shares.
Joe,
Thanks, I missed that / was not able to find the hook to the preferreds.
Dave S
Any idea why FBS-A is down big today?
Joe,
If CIT does delcare BK, do you see residual value in the preferreds?
Dave
Thanks, In hindisght I wish I had sold the AHR-D as well LOL.
Thanks, there may be a lot more room to run. But a profit is a profit and I think the financials are due for a pullback.
Sold my holding in CIT-A at 3.75. Couldn't resist a quick 70% profit.
Picked up some CIT-A and PFX this morning.
SFI preferreds are getting hammered today on liquidity issues from Friday.
CRBS had net tangilbe assets of $950 million as of 31 March. If they issue all shares, there will be 626 million shares outstanding. Thus book value per share will be about $1.50.
At $.58 per share the share price would be about 38% of book value, if book value does not all off.
Yep, I read that in the prospectus that you linked.
thanks a lot
Is the offer still effective, i.e. can on tender shares?
Did you see what happened to CTZ-A? WOW!!
Sold all my shares of c
I wonder if this hit the preferreds:
http://online.wsj.com/article/SB124897332666294327.html?ru=yahoo
Some very strange trading patterns that I can't get may arms around.
FNM and FRE preferred's getting beaten up today.
I tendered the G's and E's, hoping that they would be accepted. I would like to see them delivered soon.
Joe,
Someone else has picked up on your observation:
http://seekingalpha.com/article/152421-update-fannie-and-freddie-preferred
Dave S
It was clear that the Z preferred were a bet on the BK before the conversion. I didn't realize the bond was used to make the buy for you.
Have you looked at CNB-B?
I am not sure that I understand the price action. Reading the prospectus on CIT-Z over and over, it appears that they are virtually worthless if the stock stays arounf $1 or $2 until the mandatory conversion date of Nov 2010.
It seems to me that you have to pay $25. for .72 of a share worth almost nothing and hope that the company still has a treasury left to pay off $25. for the bond in 2015.
I sold my position in CIT-Z for a decent profit. Not sure what
happens to these after the x-div date.
Thanks, for the input.
Any thoughts on AKT in here?