Bargin Stock Sale at Freddie
One of the things that I have said about financial stocks is that you will have no idea what they will look like at the end of the deleveraging.
Consider Freddie. Its market cap is about $5 billion. They want to sell $10 billion in shares? That means existing investor will own 1/3rd of what they previously owned as it sounds to me like a tripling of the shares. And to attact investors it would not surprise me if they further discounted so there ended up being 4 or 5 times as many shares.
And, if you read the Wall Street report, how the heck do they manage the payouts that would be expected?
But at least the existing 13-14% yield on preferred shares is a risk of losing everything kind of rate...