Lately, I have been on a streak of articles which highlight overvalued products or ones at level where Risk/Reward does not justify being a holder. Today, I would like to bring your attention to one very special preferred stock that, in my humble opinion, is a burden for the company and should have been redeemed a while ago. In addition to this, it has reached a level where you would probably be better off heading for the exit.
The Stock
The instrument in question is C-N - Citigroup (NYSE:C) Capital XIII, 7.875% Fixed/Floating TruPS Trust Preferred Securities. Here is a brief summary of its parameters, which should have you ask yourself the same question as I did: Why is Citigroup not calling it yet?
