Thanks for posting the IR e-mail. I continue to feel this is much ado about relatively limited additional risk. These banks, in particular UK based institutions, are really going to fight any grandstanding by EU politicians. It is much worse for the banks than us if they have to start defaulting on their debt obligations.
I did pick up a few more RBS during this drop but have reached my maximum allocation for one holding so moved into ING preferreds which are priced equivalently with moderately lower yield (but most, such as ISP/ISG/IND/INZ, have cumulative dividends).
I agree with a previous poster that if anything happens (again, low likelihood IMO), there could be some type of exchange into common based on PV, which is also fine with me.
i think all transfers have to be registered. currently non-market price sales of fnm/fre pfd hit all the time. they are frequently on mon or tues. they usually hit before the market opens or right at opening. they are usually big transfers. 500k to 2 or 3M shares. they do not bear a relationship to the market price. they are frequently "disappeared" shortly after the market opens.
i am pretty certain these are the registration of ASSET TRANSFERS of failed banks. the packages and the prices are just an arranged and orderly transfer. for the past year, these transfers have been booked well below market. last week, an 800k and a 2M transfer were listed at well over market price(+/- 20 or 30%)
These series have relitively small floats, so this anomoly could have been casued by a market order.
Buying & selling using limit orders has been a lesson that has been preached on this board for some time now.
Someone's poor trading decisions doesn't require name calling and assumptions on somone's intellegence.
Their may have been some legitimate reason this trade was made the way it was. Just because you don't understand it, please don't jump to the the conclusing that someone is a moron and/or there is a conspiracy or manipulation occurring.
Sometimes the simplest explination is the most likely. Do you really beleive that this low volume security is really occuring?
If so, lay out your hypothesis on who you think might be doing it, for what purpose, and how they might achieve some advantage doing so.
Thanks for your continued input and self restraint in calling people insulting names and message subject lines that typically don’t add value to the discussion topic.
First of all, I did not call anyone a name directly - I simply stated that selling that low below the ask does not appear to be smart.
Secondly, the stock could easily be manipulated by walking it down and shaking out small investors so institutions can pick up cheap shares and then walk the price back up. I would argue that happens everyday in the market and preferreds are no exception. Do I have physical evidence? No, it is just a theory and if you don't like my threads then don't read them.
There does seem to be some manipulation going on. Pref- R, S, Q and others also show similar action with trades well below the market.
I asked my broker about this a few weeks back and he says these are planned trades betwen a buyer and seller, so you can't get these prices. I wondered as a sell went off below my bid. The reality is that these trades should not show up on the elctronic exchange as they are not "at market" transactions. Supposedly the SEC is looking at this. Obviously these trades can create fear and drive the price down.
Anyway, disappointing that the prefereds continue to underperform the RBS common. The EU has effectively knocked preferreds and other junior and hybrid debt out of their rightful place in the capital structure.