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12 thoughts on “Regions Financial Prices New Preferred Issue”

  1. RF-E has performed poorly as expected, making a new low today. Meanwhile WFC-L has risen 40 points. I might trim a bit of WFC-L here, but wondering what might be a reasonable safe replacement…

    1. WFC-L and BAC-L always trade cheap vs the $25 callable preferreds. I like to swap between them when opportunities arise but neither is overpriced in my opinion.

  2. When I was a broker, Regions came out with an 8% trust preferred. As this was a solid (This was pre financial crisis) local bank, I resolved to placing this in every account I could. Easiest sales pitch I ever made: 8% !! From Regions!! No commission!! The issue sold out within three hours.

    How times have changed. I believe those hoping to flip the new 4.45% issue will be disappointed.

  3. Picked up 105 shares at $24.85. Keep em coming! A lil flip here….a lil flip there….all day everyday.

  4. I see no reason to buy this when I can buy WFC-L as a split investment grade and non callable yielding 5.2%….

    1. WFC-L may decline way more when you want to redeem it – a decline that could be far more than the extra 1%-ish you would get per year.

      Don’t get me wrong, I do own a decent chunk of wfc-L. Most was bought when it was $1300s but sold some at $1450s to take nice profits. So I am buying this and such preferreds under par with the aim of flipping for a $0.5-$0.75 gain in a month or two.

      Unlike funds / etfs most of us regular investors do not have the luxury of holding ‘forever’ and have a 1-2-3 year time horizon when we may aim to sell it.

      1. Unless WFC common goes over $200 there is no risk of redemption of WFC-L. The L would then be worth something more than 1300. But I don’t expect that to happen in the next five years.

    1. I took a quick look at other bank preferreds that have been issued at 4.25% to 4.625%. Most were investment grade (Regions is a notch below investment grade). I concluded that the Regions share price may climb to $25.40 to $25.80. As a buy and flip, it has the potential to fund a dinner out, but not much more. Not anything that I want to hold long term at 4.45%.

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