FHN.PR.H: A 6.75% Preferred Stock IPO From First Horizon

Arbitrage TraderInvesting Group LeaderFollow5ShareSavePlay(16min)CommentsSummaryFirst Horizon Corporation (FHN) recently issued the 6.75% non-cumulative preferred stock, Series H (FHN.PR.H), raising $400 million.FHN maintains strong capital adequacy ratios and robust dividend coverage, with common distributions covering preferred dividends more than six times.FHN-H offers the highest current yield among FHN's fixed-rate preferreds but lacks relative value 'alpha' versus sector peers, especially in a rising yield environment.I see no compelling reason to add FHN-H at current pricing, given sub-IG risk, limited appreciation potential, and market headwinds.Trade With Beta members get exclusive access to our real-world portfolio. See all our investments here » EJ_Rodriquez/iStock via Getty Images Co-authored by Relative Value. Overview With this, we continue our series of articles dedicated to covering the newly listed fixed-income securities on the exchange. This time, our attention will be focused on First Horizon Corporation's (FHN) recent addition - the 6.75% DepositaryThis article was written byArbitrage Trader15.68K FollowersFollowArbitrage Trader, aka Denislav Iliev has been day trading for 15+ years and leads a team of 40 analysts. They identify mispriced investments in fixed-income and closed-end funds based on simple-to-understand financial logic. Denislav leads the investing group Trade With Beta, features of the service include: frequent picks for mispriced preferred stocks and baby bonds, weekly reviews of 1200+ equities, IPO previews, hedging strategies, an actively managed portfolio, and chat for discussion. Learn more.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. 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.