Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
A question on preferreds....
Old 09-12-2008, 10:28 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
A question on preferreds....

If a company has many issues of a preferred stock in the market, then goes belly up, how are preferred shareholders paid, if anything?
Do they go in alphabetical order, paying off series A before Series B? Or does every Series get a percentage? I can't seem to find a definitive answer. Thanks.
__________________

__________________
Art G is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 09-12-2008, 11:45 AM   #2
Recycles dryer sheets
 
Join Date: Jul 2005
Posts: 113
they are ahead of the common and behind the bondholders. I don't think that the series of really matters unless specific provisions are detailed in the offering.
__________________

__________________
boutros is offline   Reply With Quote
Old 09-12-2008, 11:57 AM   #3
Recycles dryer sheets
 
Join Date: May 2006
Posts: 230
You can look in the prospectus to find out definitively, but every preferred series I have looked at or bought was pari passu with the other preferred series. Skipping the prospectus, you can also look at the summary description on quantumonline.com -- they've been accurate on the things I have looked at.

Definitely not alphabetical -- on a side note I just "love" when the company assigns tickers that are different than the series letter.
__________________
terminator is offline   Reply With Quote
Old 09-12-2008, 12:12 PM   #4
Thinks s/he gets paid by the post
 
Join Date: Nov 2007
Posts: 1,052
Thanks terminator. This is what I've thought, but someone told me otherwise. Trying to figure out if there's a play somewhere within FNM preferreds? Some show 80% dividend, and some 18%? Not sure if one is better than the other?
The alphabetical would only designate which was offered first, I didn't know if that made it a senior note?
__________________
Art G is offline   Reply With Quote
Old 09-12-2008, 02:07 PM   #5
Recycles dryer sheets
 
Join Date: May 2006
Posts: 230
I'm pretty sure the dividends were suspended on the FNM preferreds.

And yes, generally the ones I have looked at are issued in alpha order but typically the only sense in which "A" is senior to "B" is that the potential call date for "A" is earlier since the issue date was earlier.

That said I've never had a reason to look at some of the companies like FNM or GM or C which have an alphabet soup of preferreds, debt and convertibles so I don't know how "orderly" their scheme is and whether they ever prioritize preferreds.
__________________
terminator is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Foreign Bank Preferreds winnie Stock Picking and Market Strategy 4 01-02-2008 02:43 PM
Long term bonds or Preferreds??? modhatter FIRE and Money 10 09-23-2007 11:38 AM
Income - REIT Preferreds Danny FIRE and Money 2 08-14-2006 03:11 AM

 

 
All times are GMT -6. The time now is 01:26 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.