C - Citigroup: Which Preferred Is Better: C-J Or CPRN?

2024-02-19 16:00:00 ET

Summary

• Citigroup is one of the oldest and largest banks in the United States. This article reviews a Traditional and Trust Preferred security.
• Citigroup has a TruPS called Citigroup Capital XIII — FXDFR PFS REDEEM 30/10/2040, which has a current yield of 10.25%.
• Citigroup also has a traditional preferred stock, the Citigroup Inc. DEP SHS 1/1000 J, with a current yield of 9.3%.
• Since Citigroup was Called part of the traditional preferred, I gave it a Hold rating.  I gave the TruPS version a Buy for those who agree getting Called does not seem likely.

Introduction

From what I can tell, Citigroup has only three listed "preferreds" still outstanding after calling many of the others since 2000. One is a standard Preferred Stock, the Citigroup Inc. DEP SHS 1/1000 J ( C.PR.J ). The other is a debenture known as Trust Preferred stock: Citigroup Capital XIII - FXDFR PFS REDEEM 30/10/2040 USD 25 ( CPRN ). After a brief overview of Citigroup itself, I will compare the two Citigroup listed issues and render my verdict as to the better investment at this point. There is also a legacy Travelers TruPS but only 200k shares exist. Their website also shows several non-listed preferred stocks ....

For further details see: