7 thoughts on “Bank of Hawaii Prices New Preferred Issue”

  1. Bought a thousand and will hope for 26 and a flip. A case of Brunello as I see it. Not a long term hold for me.

  2. I was able to pick up some of this @ the IPO.
    Late yesterday I was digging into the bank’s financials and came away impressed.
    Very good capitalization ratios and the dividend history including 2007-2008-2009 is par excellent.
    As a long term holder of preferreds mainly for income I look at my preferreds as partnerships with the issuer. This one should be a good one. For the long term. If rates go up and the price of this one goes under par, I will buy more.

    RB

    1. I would be cautious about that. You are closer to being a creditor than an equity holder. They will be happy to call it if rates drop to 3 but you are in for life if rates rise. It is whatever is in the company’s best interest, not yours.

      If you want to be a partner, consider buying the common.

  3. I don’t want to start an argument but would like to say when I see these decent quality companies being able to issue these very low coupons it will be extremely interesting to see where that $25 preferred is trading in say 2 or 3 years well before the call date. I’m thinking there are tons of very “naive investors” that are going to get a shock to their system.

    1. I felt the same way when they were issuing 5+% issues. I’m willing to buy to flip when the relative value seems good. This issue is trickier so I’m just going to pass.

    2. No argument here. I’m a long term buy and holder and I’ve been using 5% as my lower limit more or less. In the low fours heck I could just buy Verizon stock for that income with minimal capital risk.

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