Andrew|Aug 04, 2026 10:26
GM. Wall Street hates preferred securities; but banks love them.
Why are banks the biggest issuers of preferred securities?
• strengthen regulatory capital ratios; specifically Tier 1 capital.
• raise capital without diluting common shareholders as much as issuing new common stock.
• flexibility to suspend preferred dividends under stress without triggering a default, unlike missing bond interest payments.
Now apply all of the above to @Strategy and the playbook becomes crystal clear.(Andrew)
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