APO - Why Athene's Preferred Series C Is Among The Best Low-Risk Bets Today
2024-05-22 10:06:29 ET
Summary
- Athene's Series C preferred stock will most certainly be called on 9/30/2025.
- It is safer than its BBB rating suggests and it makes it suitable for the basket of safe assets.
- Its yield-to-call is about 7% which makes it a better buy compared to securities of similar safety.
This post is motivated partially by practical implications and partially by instilling self-discipline. I will start with the security description and certain trivial points.
Athene has five series of preferred stocks - ( ATH.PR.A ), ( ATH.PR.B ), ( ATH.PR.C ), ( ATH.PR.D ), and ( ATH.PR.E ) with varying attributes. We will focus solely on Series C which is a perpetual non-cumulative preferred stock issued by the retirement subsidiary of Apollo Global ( APO ) with a liquidation value of $25 and a current fixed dividend of 6.375%. For its complete description, please check below:
Why Athene's Preferred Series C Is Among The Best Low-Risk Bets Today