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Subject:  Re: HFC-B Date:  5/12/2010  10:18 PM
Author:  pauleckler Number:  30839 of 35576

I don't think you are missing anything. The preferred is rated BBB, which is investment grade. So that makes it look like a reasonable risk investment.

One concern might be defaulting mortgages. Did they participate in subprime mortgages or offer second mortgages? Did they get help from the feds? Those mortgages probably have years more on the books before they are all resolved. So further writedowns (meaning big losses) could be coming. (The HFC ticker makes me think of Household Finance Corporation, famous for their storefront loan operations.)

I have a list of trust preferred stocks posted here--