Scottish Re Group Ltd Perp Pfd (SKRUF)

[Enterprising Investor]

This analogy might explain how I see things.

Five years ago, you paid $300,000 for a house, which is still the value today. Lucky you. You financed 100 percent at 0% interest rate and no maturity date. Lucky you, again.

For some reason, the mortgage company called yesterday and offered to settle the mortgage in full for cash payment of $192,000. What would you do?

I would quickly wire the money. Why? I have just settled a liability for 64 cents on the dollar. My net worth has just increased. The same can be said about the former SKRRF for each preferred share purchased below par.