Back To The Well With Variable Rate Preferred Securities

May 08, 2026 07:21:30 am

Source: SeekingAlpha

2026-05-08 07:21:30 ET

Introduction

This is not the first time I've written about these unusual preferred securities. If you have no experience with these securities, then I encourage you to read through those previous articles. It will help you to frame some of the various market effects and how they trade relative to them, as well as changes over time to their structures. These are unique securities that in general were issued back in 2007 and have a component that allows them to trade with a variable interest rate coupon that is now effected by the change in the CME SOFR 3-Month rate (used to be 3-Month LIBOR), and they have a minimum fixed floor coupon that protects them in an ultra-low rate environment like we've seen in the recent past....

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Back To The Well With Variable Rate Preferred Securities

Zions Bancorporation N.A. Depositary Shares each representing a 1/40th ownership interest in a share of Series A Floating-Rate Non-Cumulative Perpetual Preferre