C-PN Citigroup Capital XIII 7.875% Trust Preferred Securities Loading... : Investor Sentiment and Bull/Bear Views

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04:13
Aug 08
u/raytoei Reddit r/ValueInvesting
C Pr N trades at $26.25, a premium to its $25 redemption face value, while yielding ~10%. Citi's CFO recently hinted at looking into "structural funding opportunities." If Citigroup redeems the preferred shares at the $25 par value to replace them with cheaper debt (5-6%), investors who bought at a premium will suffer immediate capital losses. Avoid buying this preferred stock at a premium, as the asymmetric downside risk of a near-term redemption outweighs the high yield. Citigroup may delay redemption indefinitely to avoid a $600 million accounting loss, allowing holders to continue collecting the 10% yield.
C-PN
HIGH
13:00
Jul 25
Chris Whalen Chairman, Whalen Global Advisors Julia LaRoche Show
Buy Citigroup TRUPS
Citigroup trust preferred securities (TRUPS) pay an attractive yield, trade around $27–28, and he owns them for income without worrying about price volatility. They are a solid alternative to riskier income plays.
C-PN 1ST
MED

About C-PN Investor Commentary

Across the available history and selected sources, Buzzberg tracks C-PN (Citigroup Capital XIII 7.875% Trust Preferred Securities) across 2 sources: 1 bullish vs 0 bearish calls from 2 authors. Historical directional balance: 50% = 100 × (bullish − bearish) / all deduplicated idea records, including other directions. This is neither a probability of a price rise nor the share of bullish authors. 2 total trade ideas tracked. Latest voices: u/raytoei, Chris Whalen.