don't understand the disconnect with the common/ordinary
the ordinary shares are rallying and the preferreds continue to falter. Makes no sense to me. Even if these don't pay a dividend for a couple of years, they are still a better bet than the common as they are only trading at a bit over 20% of par. The common isn't going to 70 any time soon.
And with the British Gov't issuing new preferreds at a 12% yield, these ought to trade at or around 12%, rather than the current 25-30%. Even if the offering doesn't sell, then we are holding with the British Gov't as partners.
The market is saying something different however. What am I missing?