No. of Recommendations: 22
CMO-pB suffered a 17.7% loss today. CMO announced they MIGHT use some of the proceeds from a new offering to do a partial or full call. CMO-pB closed Tuesday at 15.30. It has a par value of 12.5. It closed today at 12.59. It has been callable for many years.

BOTTOM LINE is that you should NOT assume old preferreds will NOT be called. It is easy to get lulled into a false sense of security, particularly those with high coupon rates. This issue had a 10%+ coupon. Investors bid the price up while searching for yield. Very ugly.



Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.