Next, you will allocate 100 % of the cash until the investors have received their investment back, then 100 % of the cash until they have been fully paid
on the pref, and from the sum of those two numbers you will subtract their total distributions that were made to date.
Sometimes this comes with a match
on the pref for the promoter.
Yields
on pref's should routinely be higher than commons because of this priority.
Not exact matches
In yet another email exchange, Parrott notes that «all the investors will get this very quickly» in response to a message from Mary Goodman, a managing director at James Caird Asset Management (and a former Senior Advisor to Treasury Secretary Tim Geithner who later served as Special Assistant to the President for Financial Markets at the National Economic Council), who stated that the Net Worth Sweep «should lay to rest permanently the idea that the outstanding privately held
pref will ever get turned back
on.»
Steve Eisman, who disclosed owning Fannie Mae
prefs in smalls, implied
on TV this week that the DTAs could prove to be a catalyst for action, implying the US Treasury would be called upon to make the GSEs whole
on the potential DTA value impairment due to the proposed Federal corporate tax cut.
The Trump Bump sent the Fannie
prefs prices skyward, from lower left to upper right as Gartman would put it, approaching $ 11, appropriately,
on Valentine's Day 2017.
If second preferences count «from the bottom up», there would likely be at least 500 seats won by Con or Lab before 2nd
pref votes by / for Dem have any relevance whatsoever (based
on the 2010 election results).
Or I can transfer to a Citi Dividend
Pref, and go hog - wild
on MS in a special category (up to $ 6K spend) in only one out of the four quarters (or divided across quarters).
I have Ink Plus, Ink Cash $ 500, Ink
Pref 100K (still working
on min spend for that one).
3.5.3: - Disabled verbose logs setting
on N builds, we can not (YET) access
prefs from xposed processes, I'm using an experimental xposed build so i'm not sure if this will issue will remain
on the official Xposed for Android N.
What this means is you'll have a negative IRR each period until the cash in = the cash out (all investor capital has been returned) So a
pref based
on IRR won't pay off annual promote to the sponsor until cash in = cash out... which is essentially the problem (for the sponsor) I highlighted in my original question.
In my view, if the deal is lower
on cash flow but has higher upside (IRR), go with the 8 %
pref and the higher split.