Citi

February 27th, 2009 12:33 pm | by John Jansen |

One salesman tell me that Citi preferred which traded at 20 yesterday8 .40 prederreds) is trading around 37 today. it is a function of the price of the common stock on the conversion which gives the preferred the boost.

Another note from a research analyst at a small shop suggests buying Bank America bonds. He thinks that in a short time the common stock holders of that firm will be thrown under a societal bus to the benefit of the bondholders.

The paradigm for most of these circumstances since the beginning (except for the rogue Lehman Brothers case) has been to crush the common share holders and save the bondholders. I wonder if it will remain that way or if at some point bondholders will be forced to take a haircut,too

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  1. 3 Responses to “Citi”

  2. By anon on Feb 27, 2009 | Reply

    “I wonder if it will remain that way or if at some point bondholders will be forced to take a haircut,too”

    i hope not…not for the sake of the bondholders, but for the sake of consistency and, thus, reducing uncertainty/unpredictability.

  3. By Bman on Feb 27, 2009 | Reply

    Anon – agreed. The last thing they need here is to add more lack of consistency/transparency. If only “G-Money” could figure out what to do with all the Toxic -oh, I mean Legacy Assets.

  4. By charlie on Feb 27, 2009 | Reply

    wear your outrage about citi – check out today’s tshirt at http://www.shirtaday.com

    imagine walking into a citibank wearing this!

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