First follow up up on BMW Common – preferred stock spread

Since it seems like there is some interest in this topic by my readership (and by myself), I decided to keep track of the development.

Since the data of my first post on BMW is itself older than the date of the text published, I have 2 months covered with the newer dataset.

This is the development since March the 16^th:

 

As we can observed, the spread between both declined considerably during the last few days mainly because of a steeper decline of the common shares, however historically speaking the spread was quite high during the months covered here and considerably higher than average.

Median one year spread changed from 48,31% to 50,96%, i.e. and increase by 2,65%, quite a lot.

On the last day spread was at 47,91%, thereby laying under the 1 year historical, but still over the 2 years (46,83%) and the 9 year median spread (39,58%).

So those two last months might have been a very good time to buy into the preferreds.