Athene Holding Preferreds: Series A Floating Rate For A Cautious Rate Environment

Prakhar Agarwal, CFA 803 Followers Follow Summary Athene Holding's Series A preferred offers a floating-rate feature starting June 2029, reducing interest-rate sensitivity. ATH.PR.A trades at a ~5% discount to par, boosting yield-to-call to ~9.3% and mitigating call risk concerns. The current yield is ~6.7%, lower than peers, but a future floating-rate coupon could materially exceed current levels if rates hold. ATH.PR.A is rated buy for its interest-rate protection, stable credit profile of the company with a common equity buffer, and enhanced total return potential in a cautious rate environment. PrathanChorruangsak/iStock via Getty Images Athene Holding Ltd. has in total four series of outstanding preferred shares. Only one of them, however, which is Series A ( ATH.PR.A ) is a floating-rate preferred, while the others remain either fixed-rate preferred or fixed-rate This article was written by Prakhar Agarwal, CFA 803 Followers Follow I have been managing investments for over eight years in capital markets. By qualification I am a CFA Charter holder. I primarily look for discrepancies between the price and value of a security. With a focus on first-principal mindset, I try breaking down ideas into their core- most tangible parts, affecting the theses while deliberately avoiding the non-significant matter into crowding the analysis. If you like my ideas or frameworks, reach out via email/message for more granular and concentrated- portfolio level specific investment researches and ideas. I am at [email protected]. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Readers are advised to fact-check thoroughly before committing any capital to this idea; this reflects the personal views of the author and should not be pursued as formal financial or investment advice in any manner. While every effort has been made to ensure accuracy, errors may exist in the data and financial projections presented. The author is not responsible for any financial gains or losses incurred from investments made based on this content. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.