Smilodonfatalis
Active Member
- May 5, 2013
- 745
- 126
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I just purchased some shares of CYNpC.
It's a perpetual preferred stock recently offered by City National Bank. It pays over 5% yield and is currently selling for less than its redemption price.
Before I decided to invest in this stock, I read the prospectus. It sounds like a joke from Monty Python's Flying circus.
They say they plan on not redeeming it for 50 years...unless they redeem the stock in 2017or before 2017 or after 2017. So in other words, they're going to do whatever the hell they want.
If the company faces financial problems, owners of this preferred stock will have priority in getting dividends over the owners of their common stock...unless City National issues new preferred stock which would make the new preferred stock senior to this preferred stock which would become a junior note.
I think it all boils down to the bank is going to make money. Shareholders may or may not make money.
It's a perpetual preferred stock recently offered by City National Bank. It pays over 5% yield and is currently selling for less than its redemption price.
Before I decided to invest in this stock, I read the prospectus. It sounds like a joke from Monty Python's Flying circus.
They say they plan on not redeeming it for 50 years...unless they redeem the stock in 2017or before 2017 or after 2017. So in other words, they're going to do whatever the hell they want.
If the company faces financial problems, owners of this preferred stock will have priority in getting dividends over the owners of their common stock...unless City National issues new preferred stock which would make the new preferred stock senior to this preferred stock which would become a junior note.
I think it all boils down to the bank is going to make money. Shareholders may or may not make money.
