I am a bit puzzled to see PGF tanking. I understand the fears or losing the pref dividends, however when looking at the new concentration of the holdings I can't see the danger being so high. Citi and BofA's holdings have been dramatically reduced, and the other heavy holdings are not in danger of failing or being nationalized....what do you think?
I would like a link to your sourcs about current holdings of PGF. I do hope that they have reduced their exposure to the banks that are "zombies". Surely, there are preferred issues out there that are not so closely tied to banks. What say you?
The $64 question! There is no purchasing impetus until the future of the banks becomes either clearer or given a ray of optimism. Financial issues are now flotsam. The fear is palpable that a whole new banking paradigm will have to emerge in the failure of fed programs to reinstill confidence...But now there seem to be revival of high grade corporate bonds with large issues being financed. The TALF program seems to suggest that nationalization is not in the forefront of govt. thinking (as are prior public pronouncements.)...My feeling is that there is unique uncertainty and fear and until it is assuaged you are going to see no demand for most financials (and predatory short selling.)
there is a disconnect between preferred and common, the play right now is betting on nationalization of ALL banks... Thats how i read it... it is well overdone and i think this is a great opportunity to pick up a larger position in these preferred stocks... I started yesterday at 7.40 and have added today at 6.60 and i will continue adding either lower or when they come out and take this nationalization off the table... Think these rumors are completely false ....