_ultraforma_/iStock Unreleased via Getty Images Introduction For investors looking to hold preferred stocks, Citigroup ( C ) was an outlier with only one available, the Citigroup Capital XIII TR PFD SECS ( C.PR.N ), which, based on comments in my recent article , many took a pass on as it is Callable and trades near $30. Despite that, for reasons mentioned, I gave it a Buy rating as I saw odds of ...
_ultraforma_/iStock Unreleased via Getty Images Introduction For investors looking to hold preferred stocks, Citigroup ( C ) was an outlier with only one available, the Citigroup Capital XIII TR PFD SECS ( C.PR.N ), which, based on comments in my recent article , many took a pass on as it is Callable and trades near $30. Despite that, for reasons mentioned, I gave it a Buy rating as I saw odds of a Call very low and its floating yield tops 9%. Those concerned investors now have a second choice, the Citigroup Inc. 6.25 DEP PFD II ( C.PR.R ). While it has the best yield compared to three other major bank issues, I’m giving it a Hold rating due higher (though totally unlikely) default risks and preference for the other Citigroup preferred stock. Citigroup review Besides Call and interest-rate risks, understanding the issuer is needed to evaluate the issue’s default risk. Seeking Alpha describes this large U.S.-based bank as: Citigroup Inc., a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. It operates through three segments: Institutional Clients Group (" ICG" ), Personal Banking and Wealth Management ("PBWM"), and Legacy Franchises. The ICG segment offers wholesale banking products and services, including fixed income and equity sales and trading, foreign exchange, prime brokerage, derivative, equity and fixed income research, corporate lending, investment banking and advisory, private banking, cash management, trade finance, and securities services to corporate, institutional, and public sector clients. The bank traces its lineage back to 1812. Citigroup is the third-largest U.S.-based bank as measured by assets, though just half the size of the largest, JPMorgan Chase & Co. ( JPM ). Its Citibank has under 700 branches in only 13 states, but over 2500 worldwide. Across the globe, it has ...