No. of Recommendations: 1
You are right, however in this case I am looking at US regional bank preferred shares, and they are a complete mess. Most of this is trading with dividends deferred, and many of the peers are selling at 50% of tangible book value!!

So, I simply don't trust the quotes.... And the peer data has too many issue specific things going on.

In general, for an issuer with a given probability of default (which we can derive from the S&P rating), there are calculations that can be done to state what is fair value for the bond with different coupons and maturities, *at different levels for the risk free rate*. I went through this exercise before and I know I found a really good calculator, and it clearly showed that it took only small movements up in the risk free rate to severely maul the fair value price for bonds with long-dated maturities. I would really like to locate such a calculator again.
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