High-yield Preferred shares fixed income, *near risk-free

Discussion in 'Fixed Income' started by johnarb, Jun 30, 2025 at 12:27 PM.

  1. johnarb

    johnarb

    ***** Not Financial Advice, dyor, I have no college degree *****

    Perpetual, too, but unfortunately, trading above par

    Since they are lower risk than 30y UST, they should be trading with a lower yield than 30y UST, or about $170+/share

    strk should replace the 40 on the 60-40 portfolio

    strk, strf, strd (junk bond terms)

    • designed by AI
    • strk and strf are best performing preferred shares since issuance

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  2. How are you arriving at "lower risk than USTs"?
     
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  3. johnarb

    johnarb

    I heard on YouTube podcasts based on preferred shares seniorage claim to assets minus liabilities

    https://www.strategy.com/
     
  4. Aww, c'mon.
     
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  5. johnarb

    johnarb

    The numbers are published as required by SEC, (convertible) debt, value of bitcoin treasury asset and the senior claims to those bitcoin ahead of mstr common shares at the bottom
     
  6. johnarb

    johnarb

    It takes mstr a few hours to generate the $ to pay the dividend obligations for strk, and strf

    They sold mstr ATM shares last week for the dividends, and still had over $470M leftover to purchase bitcoin, increasing the bitcoin treasury asset value even higher

    Additional permanent capital (bitcoin treasury asset) on the balance sheet without debt obligations

     
  7. johnarb

    johnarb

    These preferred shares are "uninvestable" by over 90% of the fixed income investors as they are not rated

    mstr is in the Nasdaq 100, MSCI and today was added to the Russel Top 200 Value Index

    If mstr gets added to the S&P 500, these preferred shares should be rated

    Saylor has not been shy to tell everyone he wants 1% of the $300 Trillion global fixed income market
     
  8. johnarb

    johnarb

    I don't think this is normal price action for preferred shares, but I did say strk should be trading above $170/share on the OP


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  9. johnarb

    johnarb

    After market hours, strk is still going up a lot...

    strk is unique from strf and strd as it has a "call option" as well, 10 to 1, when mstr hits $1000/sh


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