No. of Recommendations: 1
Be careful! WaMu is desperate for cash.

It's worse than that, their convertible preferred is not a nice instrument. The third paragraph of the prospectus states that the fat juicy dividend is non-cumulative. This means that the board of WaMu can choose not to declare a dividend during a particular quarter for any reason and holders of the convo preferred will never see their divi money. Ever. Here I'll quote it:

Dividends on the Series R Preferred Stock will be non-cumulative. If for any reason our board of directors does not declare full cash dividends on the Series R Preferred Stock for a dividend period, we will have no obligation to pay any dividends for that period, whether or not our board of directors declares dividends on the Series R Preferred Stock for any subsequent dividend period. However, with certain exceptions, if we have not declared, paid or set aside for payment full quarterly dividends on the Series R Preferred Stock for a particular dividend period, we may not declare or pay dividends on or redeem or purchase our common stock or other junior securities during the next succeeding dividend period.
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