adjustable-rate preferred stock

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Adjustable-rate preferred stock (ARPS)

Publicly traded issues that may be collateralized by mortgages and MBS

Adjustable-Rate Preferred Stock

A preferred stock paying a dividend that varies from time to time. Usually the dividend rate is the same as the interest rate on a Treasury security, which is adjusted quarterly. They may also be backed by mortgages or mortgage-backed securities. ARPS's tend to have stable prices because a drop in the common share's price is offset by a rise in bonds, and vice versa.

adjustable-rate preferred stock

References in periodicals archive ?
Our results for the prior year were impacted by an after tax charge to earnings related to an other than temporary impairment in value of certain adjustable rate preferred stocks of $2,381,000 in the fourth quarter of 2004.
The dividend rates on the adjustable rate preferred stocks are 6.
80 per fully diluted share charge to earnings as a result of an other than temporary impairment in the value of certain Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Corporation (Fannie Mae) adjustable rate preferred stocks it holds in its investment portfolio.

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