Valuing TARP Preferred Stock
Copyright policy )Valuing TARP Preferred Stock
This is the only paper to provide a valuation framework for untraded Troubled Asset Relief Program (TARP) preferred stock. Up to $8.1 billion of bailout preferred stock, which is currently paying dividends, could be auctioned to investors. The first auction was held in March 2012. This paper provides a framework to estimate future dividend skipping rates and the rating of unrated and untraded preferred stock issues. It provides a valuation model for non-distressed issues. The model in the paper accurately predicted that the auction of MainSource Financial Group (MSFG) would raise about $53 million.
- University of Louisiana at Lafayette United States
Auctions, Bailout, Banks, Capital Purchase Program, Dividends, Hybrid Securities, Preferred Stock, Private Placements, Ratings, TARP, Troubled Asset Relief Program, Valuation, jel: jel:G28, jel: jel:G01, jel: jel:G21
Auctions, Bailout, Banks, Capital Purchase Program, Dividends, Hybrid Securities, Preferred Stock, Private Placements, Ratings, TARP, Troubled Asset Relief Program, Valuation, jel: jel:G28, jel: jel:G01, jel: jel:G21
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