Ah the attractive perpetual securities.
We seem to notice companies issuing them in groups. It is as if they discussed with each other what is the best way to raise capital in the current operating climate and come to a conclusion raising perpetuals are the best way to go.
As an investor, you may look at perpetual securities as #1 your wealth machine focusing on manageable returns with lower volatility from bonds, preference shares, insurance endowment and perpetuals and #2 from your perspective as an active stock investor, how these perpetuals will affect your stock investments.
Today, we try to bring the discussion to #2 and I will not cover how you should evaluate these perpetual as an investor looking for manageable returns by not pushing volatility hard.
