Trying To Beat VRP With One Of Its Own Holdings - MS.PR.A

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  Posted by Two Blokes Jul 6 - Filed in Stock - 5 views
  
  MS-A preferred stock is currently undervalued by about $2 relative to VRP, presenting a mean reversion opportunity. A pair trade - long MS-A, short VRP - can lock in this valuation gap, with manageable borrow fees for VRP. Directional investors may consider swapping VRP for MS-A to capture potential alpha as MS-A potentially reverts to historical pricing.