So now I put about 20 % down and borrow the rest to invest in REITS,
pref shares, high yield bonds, and then a few smaller amounts in broad indexes for emerging markets, U.S., International, Canada.
Dividends must be paid out to
pref shares before common shares.
Not exact matches
Bill Ackman's Pershing Square is much less committed, in terms of size of position at least (but still a sizeable swing at 9 %), and has chosen to purchase the common
shares of both Fannie and Freddie (although he has been rumoured to be selling common in favor of the
prefs).
Ronak — I don't have a specific example that I can
share, but Dan Rosen's light
pref is a widely used standard.
Ongoing holders of Lloyds preference
shares — such as its 9.75 %
prefs (with the ticker LLPD)-- have seen their dividends almost certainly suspended until 2012, as a result of an EU ruling concerning state aid for the banks.