ORH.A

[Crip1]

This week, ORH.A Pfd is up close to 6% where the common is down more than 1.5%. Any thoughts as to why this may be?

 

-Crip

[zarley]

I don't think there's a lot of correlation between the moves in the common and the preferreds.  ORH.A only traded a few thousand shares this week, and nearly all of that volume was on Tuesday.  The big jump for ORH.A was on Wednesday on less than 1,000 shares. 

 

I own a little ORH.A and don't think about the price much at all.  I'll just take the 11% yield and wait for them to get called, or bought back.  It's kind of like a bond I fully expect to hold to maturity.

[oec2000]

Crip, aren't these moves too short term to be meaningful? Besides, the pfds should trade purely as a function of interest rates whereas the common trade as a function of the mood of Mr Market.

 

If you still want a reason, I would speculate that the ORH pfds are looking cheap relative to the bank pfds and are simply playing catch up.

 

Guess I now make full member! :D

[basl1]

Random variation?

 

[StubbleJumper]

The bank preferreds have had a nice run.  ORH-A is probably moving slightly in sympathy.  IMO, it is still one of the more attractive preferreds out there.  Would you rather own the preferred issues from RNR or ORH?  It's a no-brainer for me.

 

SJ