Meanings of preferreds in English

Issuing new Tier 1 preferreds in CDOs is also not an option.

Goldman can buy back the preferreds at 110 percent of face value.

Buying a pool of preferreds through exchange-traded funds can help you mitigate that risk.

SunTrust has made no statement but is likely to issue a government convertible preferreds in my judgment.

That doesn't mean you should gorge on the high yields that preferreds offer and abandon common stocks.

An attorney for the holders of the trust preferreds did not immediately return a call for comment.

Trust preferreds are equity-like securities that also make quarterly interest payments and qualify as debt for tax purposes.

PNC is at least confident that straight preferreds will be considered a viable form of Tier 1 capital going forward.

Lehman said it can sell up to another $450 million of additional convertible preferreds to meet extra demand.

And it's likely that banks will look to issue many preferreds as soon as possible, given the upward Treasury rate trajectory.

The measure requires that Tier 1 capital at bank holding companies comprise only equity and not hybrid instruments such as trust preferreds.

The need to replace them with new perpetual non-cumulative preferreds that do qualify as Tier 1 is still huge, according to analysts.

Dividend yields on bank preferreds have been about four percentage points higher than yields on 10-year bank debt, according to Barclays' fixed-income research.

And last summer, when the market showed signs of running out of steam, we began switching to defense holdings-utilities ,high-gradepreferreds, and bonds.

I utilized the finest Wall Street jargon, stressing that each one of the convertible preferreds had a different delta and a different gamma.

Keep in mind that preferreds have yet another advantage that somewhat offsets their close correlation to bonds: They are less volatile than common stocks.