No. of Recommendations: 8
That's what makes this attractive to me: a very high current cash yield, seniority to common, no maturity date, a voluntary conversion right, and an issuer conversion that can only occur after a very substantial rise in WFC.
Even if forced to convert some day in future, you can sort of "hedge" that situation a bit (admittedly not so much of a problem if buying today, since it's pretty near par). It can only happen if the common does REALLY well, so you can pair the preferred with a little chunk of common to soften the blow. Plus, of course, the value of the common is much more effectively inflation adjusted.
But don't overlook the other downside--it's not the inflation erosion of your coupons that is the biggest problem, it's the erosion of the capital if you ever ever want to sell. If you're sure just want the coupons forever, that's not a big issue.
Jim
