This new issue is now trading on the NASDAQ under ticker BWBBP.
It is a never ending game recently chasing symbols–thanks to HankLA for posting this info.
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4/24/2024
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Went up 40 cents when you posted this.
26.50
I know I am not comparing apples to apples but I am having a hard time figuring out why I would buy this small banks preferred at 26ish versus si.a at 24. They seem to be similar category of risk but si.a might be a better growth propect solidifying a higher price down the road if they succeed. Which might translate into that 24ish becoming 25. The company this post talks about probably does not have the same prospects to grow. Dunno. I bought a tad more si.a instead of this.
Given price directions of the two, it could be that most folks have little confidence in the alternate currency business. Or, at SI you don’t get that free toaster with a new account.
TBH I’d argue that for a preferred holder the solvency risk is much higher with this traditional bank, than with SI’s short-term security balance sheet. However I think the answer is that the market is trading these on current yield more than yield-to-call. The lower coupon on SI has hurt it relatively. Over time that may change, but right now they’re trading right on top of one another in terms of current yield at least.
Crazy stuff
When I post something it goes to a couple thousands folks instantly.