Preferred Stock Issues – When Is The Risk Worth The Reward?

Banco Santander, S.A. (NYSE:SAN) Fixed-to-Floating Non-Cumulative Guaranteed Series 11 Preferred Securities (NYSE:SAN.PRF) Current yield: 10.50% Liquidation preference:      $1,000 Recent market price:          $1,000 Total value of preferred stock issued at the end of Q2 2013:    EUR 5.4 billion. First half 2013 EBIT:         EUR 10.6 billion Banco Santander, S.A. (NYSE:SAN) offers two types of preferred stock, the 10.5 percent listed here and another issue offering around 8 percent. Santander is one of the Eurozone’s most stable banks and yield on its preferred stock is easily covered by net income. This preferred issue has traded at around a 5 percent premium to its…