TITLE

VALUING TARP PREFERRED STOCK

AUTHOR(S)
Wilson, Linus
PUB. DATE
January 2013
SOURCE
Review of Business & Finance Studies;2013, Vol. 4 Issue 1, p17
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This is the only paper to provide a valuation framework for untraded Troubled Asset Relief Program (TARP) preferred stock. Up to $8.1 billion of bailout preferred stock, which is currently paying dividends, could be auctioned to investors. The first auction was held in March 2012. This paper provides a framework to estimate future dividend skipping rates and the rating of unrated and untraded preferred stock issues. It provides a valuation model for non-distressed issues. The model in the paper accurately predicted that the auction of Main Source Financial Group (MSFG) would raise about $53 million.
ACCESSION #
84334748

 

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