Can anyone explain me Citi Preferred stocks and why it make sense to buy it ? Thanks
CITIGROUP PFD F(NYSE: C-PM)$17.61CITIGROUP PFD SER AA(NYSE: C-PP)$18.12Citi preferred will convert to 7.31 common whenever SEC approves and management releases the shares.Citi is trading around $3.17.Now, Citi Preferred Series AA will translate to $2.41/common share.Similarly, Citi Preferred Series F will translate to $2.48/common share.There is an arbitrage opportunity here.From Citi Preferred AA series that is $3.17-$2.41 = $0.76/shareFrom Citi Preferred F series that is $3.17-$2.48 = $0.39/shareThere is no differene between Series AA and series FF conversion. They are trading at different price points as they pay different interest rate. The face value of both the preferred stocks is $25.
read board c-pp for the best information, the information here is not correct....
where is board c-pp?