Mr Cooper Group Inc (COOP)

[gophilipgo]

True, but it's much more likely that preferreds are paid in full before commons receive anything significant. I'm not trying to suggest your scenario can't happen, but the odds are clearly in favor of preferreds being paid full or near before commons see much. The absolute priority rule is there for a reason. In the majority of cases, this is how it works. That's why many, many people recommend hedging some with preferreds.

Ultimately though, we are all on the same side, so I'd rather not argue this point to death.