RE:RE:RE:Preferred SCIB completely inadequateDisclosure: long both prefs and common equity (weighted more to the prefs).
There are potential conficts of interest here but would say that most scenarios could be positive for both.
I tend to see them with a similar profile, just with a variation on that risk-return profile.
Anyways, if your goal is to keep the prefs stranded, you may want to calculate the after-tax yield on the prefs from the point of view of the issuer (point of view of the enterprise value). You may find that the after-tax yield will remain well higher than the yield-to-par until underlying operations can report a taxable profit.
The Stockholm Syndrome happens when the victim falls in love with the abductor and the victim then may not leave when she or he could or should. There is also the Aimia Syndrome which happens when holding the stranded doesn't make sense anymore.
In the meantime, buying securities below their intrinsic value makes sense for all involved if the overall intrinsic value is not eventually destroyed or dissipated.