Beta... Wouldn't it be better if they start paying Div. on the FMCKJs rather than call them for redemption?
They recently, unilaterally, changed the "rate" on these PFD to 6.42%+LIBOR. Current anticipated yield, about 7.875%.
Two problems with that.
1- I'm not sure they can flip the rate on PFD after issue?
2-If the div. is suspended, and they anticipate redemption in the future, why fool around with the security if you don't expect to pay the div. anyway?
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