MBNKO: A 9% Fixed Rate Reset Preferred Share IPO From Medallion Financial

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  Posted by Two Blokes Jul 10 - Filed in Stock - 2 views
  
  Medallion Financial Corp.'s new 9% preferred, MBNKO, offers high yield but comes with substantial credit risk. Medallion Financial's high leverage, weak capital structure, and inconsistent dividend history raise red flags for preferred shareholders. Relative to peers, MBNKO's risk/reward profile is unattractive for me, with a below Single-B implied credit quality and longer duration.