Sanjeev - can you explain what you mean here? How would the warrants be less risky than common in the case of large liability/loan losses? Do you just mean that in terms of risk/reward, the warrants passed your criteria while common did not when you started buying?
Would love to know if there are any clauses that somehow protect the warrant vs common in case of large losses or dilution. I haven't seen any and highly doubt it, but, um, that would be great to know if so.
I actually switched from the "a" warrants to common early this week when the warrants were well above their lows, at around 3.20 and common was tanking around 6.50. Partly because the math meant only a significant difference in payoff between common vs warrant starting north of $32/share in 2019, and partly because I had less perceived risk with the common in the event of large liability/loan losses, a lost decade or two, or any other wacky things that could keep the share price low for 7.5 years.
BTW, thanks for your commentary on BAC recently. Very informative.