Coolius
Full time employment: Posting here.
- Joined
- May 15, 2010
- Messages
- 862
Anybody who jumped in on TCF-B a few weeks ago is seeing exactly how a past call "should be called but hasnt" reacts. It just creeps upward. Easiest simplest short term trade of the year in terms of safety and price support. Probably will level off a bit soon until the next divi gets declared as market is very suspicious of a call.
Yes, this is an almost textbook example of call fears affecting the Preferred price.
Those who bought TCF-B at or below $25.47, have offset the over-par premium with the dividend on September 1. Then its just a matter of hoping they will not call.
Every day without a call, after Sept 1, means 1/2 cent/share earned - a 7.4% annualized ROR.
I was a little late to the party, but managed to buy 800 shares @ $25.46 last week.