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Digital Credit vs Analog Credit:
ANALOG:
Wells Fargo $WFC-PL
Non Cumulative
Convertible Perpetual Preferred
Par: $1,000
Yield: 7.5%
Price: $1,256
Effective yield: 5.9%
Duration: 16.9 years
Avg 30 day Volume: $6.7 million
Notional O/S: $3.9 Billion
Volume to Notional (turnover liquidity): 0.17%
It would take ~ 582 days to turnover the entire market cap with the avg volume. (Roughly 2.3 years)
DIGITAL:
Strategy $STRC
Cumulative
Variable Perpetual Preferred
Par: $100
Yield: 11.25%
Price: $99.95
Effective yield: 11.255%
Duration: 8.8 years
Avg 30 day Volume: $95.8 million
Notional O/S: $3.4 Billion...
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