One rumour is that it will set up a Securities Holding Fund to buy preferred stock issued by the banks.
You should call the fund company to find out what portion of the fund is in true preferred stock versus trust preferred.
WSJ: For Investors Seeking Income, Preferred Stock May Make Sense
Hayes has stopped honoring demands for conversion of the preferred and has sued the hedge fund operators in New York State Supreme Court.
You can download a pdf of this investment report with its 32 stock, fund, ETF and preferred stock recommendations by clicking on this link.
Meanwhile, if you want a fund chock full of preferred stock that will give you qualified dividend income, look to the PowerShares Financial Preferred ETF, which produces 100% qualified income, says Ms. Woodham.
WSJ: For Investors Seeking Income, Preferred Stock May Make Sense
Relying on vast infusions of money from the IMF could actually worsen the problems of a country like Italy, since the fund's presumed preferred-creditor status would push private bondholders further down the pecking order.
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Now we hear allegations that hedge fund managers have select, preferred customers who can move in and out of funds hassle-free while other investors remain stuck.
If the fund agrees to participate, its preferred-creditor status will be punctured.
Hicks and Southridge Capital were the subject of a 2002 Forbes article (see "Sinking Fund") on death spiral preferred financings that also detailed the work of Mark Valentine, former chairman of Canadian brokerage Thomson Kernaghan.
According to Mr Lawrence's own research, a third of the fund managers who used the exchange preferred to stick to the old share-trading system, a third wanted it scrapped, and the rest cared little either way.
Greenlight Capital titled its preferred stock proposal iPrefs, however, the hedge fund withdrew a shareholder lawsuit surrounding the payout earlier in 2013.
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Blank-check preferred is usually used as a takeover defense and hedge-fund managers typically want to take this weapon away.
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The fund could invest in everything: municipal bonds, equities, preferred stocks, futures, options and options on futures.
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Given the reliance on cash flow to fund dividends, be careful not to overlap common stock holdings with preferred stock holdings.
He has unsuccessfully been lobbying the company for months to issue perpetual preferred shares to its shareholders that would pay a nice yield and give hedge fund managers a new security to trade, which is the kind of thing they love.
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Forget all of the smoke that hedge fund manager David Einhorn is blowing right now about Apple and its proposal to eliminate its ability to issue preferred stock.
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