There are a few ways to miss out when looking at preferred shares. One way is to pass on a very attractive security because investors refuse to own anything at a price higher than par value.
If investors absolutely refuse to pay $25.01, they will pass on several great investment opportunities. Rather than treating all securities that trade above par value as being useless for investing, investors should be prepared to amortize the premium over the life of the security.
Being stubborn does not change the facts.
AGNC Investment Corp.
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