In Search Of Yield: Yield To Call 24.07% For I-Star Preferred I

A potential investor seeking both capital appreciation and income and willing to accept the risk of substantial capital loss might want to consider adding I Star Preferred I (hereafter "SFI-I") to their portfolio. SFI-I has a current yield of approximately 9.375% with a redeemable value of $25 and a last sale of $20.15 which means that if the preferred is redeemed an investor could realize a yield-to-call of approximately 24.07%. Investment Thesis This is a distressed investment in a preferred stock of a highly leveraged real estate investment trust ("REIT"), iStar Financial Inc., (SFI) that is in process of restructuring its balance sheet. The investment thesis is based on the expectation that they will be successful. SFI-I trades at its current yield-to-call of 24%, because of the perceived risk of bankruptcy due to the inability of SFI, the company, to refinance its balance sheet or obtain appropriate liquidity.... Read more

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