From Seekingalpha · Prakhar Agarwal, CFA · · 50s
Regions Financial Preferred: Lower Duration, Limited Yield Appeal
Regions Financial's Series C preferred offers low interest risk but modest returns compared to other series.
In brief
Regions Financial's Series C preferred offers low interest risk but modest returns compared to other series. Regions Financial's Series C preferred has lower duration risk but limited yield appeal versus Series E and F. Originally reported by Seekingalpha.
Regions Financial Series C Preferred
Regions Financial Corporation Series C preferred offers low duration exposure and a 5.70% fixed coupon, transitioning to SOFR-linked rates in August 2029.
Current Yield Comparison
RF.PR.C’s current yield (~6.05%) is materially lower than Series F and Series E, both offering ~7.2%+ yields.
Series F Preference
Series F provides similar interest-rate risk mitigation presently but with a higher current yield and comparable call protection, making it more attractive for new allocations.
Dividend Coverage
RF’s preferred dividends are well-covered, with over $2B in earnings covering $82M in payouts (~25x coverage), supporting the credit quality of all preferreds.
The essence
Regions Financial's Series C preferred has lower duration risk but limited yield appeal versus Series E and F.
