No. of Recommendations: 0
I took a look at Citigroup's most recently issued Trust preferred security, which is as close as I could find to a convertible preferred as described in the WSJ article- that is to say, not close at all. I bolded the part I like least.


Citigroup Capital XX, 7.875% Enhanced TruPS Trust Preferred Securities
Ticker Symbol: C-G CUSIP: 173085200 Exchange: NYSE
Security Type: Trust Preferred Security

SECURITY DESCRIPTION: Citigroup Capital XX, 7.875% Enhanced TruPS (Enhanced Trust Preferred Secuirities), liquidation amount $25 per share, guaranteed by Citigroup Inc. (NYSE: C), redeemable at the issuer's option on or after 12/15/2012 at $25 per share plus accrued and unpaid dividends, and maturing 12/15/2067. Cumulative distributions of 7.875% ($1.96875) per annum are paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record one business day prior to the payment date while the securities remain in book-entry form. Dividends paid by trust preferred securities are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. The company has the right, at any time, to defer dividend payments for up to five consecutive years before the alternative payment mechanism of selling common shares to pay dividends takes effect and up to 40 consecutive quanters without giving rise to an event of default (but not beyond the maturity date). The trust's assets consist of the 7.875% Junior Subordinated Deferrable Interest Debentures due 12/15/2067 which were purchased from the company using the funds generated from the sale of the trust preferred securities. See the IPO prospectus for further information on the enhanced trust preferred securities by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange NYSE
Cpn Rate 7.88%
Ann Amt $1.96875
LiqPref $25.00
CallPrice $25.00
Call Date 12/15/2012
Matur Date 12/15/2067
Moodys/S&P A1 / A+
Dated 12/14/07
Distribution Dates 3/15, 6/15, 9/15 & 12/15
Tax Rate 15%

Who wants to wait five years in a worst case scenario for your coupon payments?
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