Preferreds a good value?
I don't normally bother with preferreds being more interested in capital appreciation, but saw some time ago that a Ryoal Bank pereferred perpetual (T.RY.P.C) was selling at a discounted price of $22. That made the yield over 5% at the time, which isn't bad to be paid for waiting, and though I didn't step in, it has now returned to pretty much par. On perpetuals, at least, it seems that any discount is an invitation to buy.
But what about resets? When I look at the Equitable Preferred C, I see a significant discount to the call price - no guarantee when it resets, and when the dividends are non-cumulative, of cour se, but it doesn't reset til 2024. Surely the interest rate market will change in that time, of that we can be sure.
So I'm asking why is it discounted so much? And though I wouldn't ordinarily buy a preferred for capital appreciation, it seems like there's a golden opportunity in some reset preferreds with long dates to reset (2024 and further) to gain perhaps 20-40% capital appreciation in addition to being paid 6-7% to wait it out.
All thoughts welcome.