STT - State Street Preferred: 6.7% From A Too Big To Fail Bank
2024-02-16 13:18:00 ET
Summary
- State Street Bank issued a par $1,000 preferred stock with a coupon of 6.7% that resets every five years.
- State Street Bank is a Global Systemically Important Bank (GSIB) and has the highest credit rating among US-based GSIBs.
- The State Street preferred stock offers balanced protection from credit and rate risk and is modestly undervalued compared to alternatives.
- STT preferreds are only modestly undervalued in today's market. That, along with the likely reversion of today's exuberant market conditions, makes the STT preferreds unlikely to ever be called.
This is a guest post by Landlord Investor
State Street Corporation ( STT ) recently issued a par $1,000 preferred stock with a coupon of 6.7% that is attractive. Below are the key details of this fixed-reset preferred....
State Street Preferred: 6.7% From A Too Big To Fail Bank