No. of Recommendations: 15
The series L convertible "perpetual" preferred shares of BAC and WFC took a pasting shortly after open. They were down about 10% and were yielding 7%. And the dividend is qualified.
The conversion terms will not be met for many years, even decades, and can be thought of as perpetual. And the dividend and principal are extremely safe, given that they are TBTF banks.
Looks like there were big sales at open from investors desperate for liquidity to meet margin calls etc. They have begun their recovery, so the opportunity may have been fleeting.
Might be a good time to put in low ball limit orders to buy your watch list favorites.
