The Allstate Corporation (NYSE:ALL) has announced a new preferred offering.
Eagle eye 730Cap caught this one early so a thanks to him/her for the note in the “Reader Initiated Alerts” segment of the website.
The new offering will be non cumulative of course as all insurance issues are but will be qualified for preferential tax treatment.
As 730Cap noted it is likely that ALL will redeem some of their currently outstanding preferreds as they have 5 issues outstanding and 3 have passed the 1st call dates.
The new issue will be low investment grade (BBB- from S&P and Baa3 from Moodys)
Once again we have investors “asleep at the wheel” as the ALL-E issue has traded as high as $27.50 in the last month and currently is still at $25.86—this is a 6.625% issue that became redeemable in April. Investors need to wake up–there are going to be huge redemptions in the next few months and years at the level of interest rates that are with us now.