Right, I see your confusion.No, the entity can only redeem these...

Right, I see your confusion.

No, the entity can only redeem these at face value -> $100.

Even if these trade at $16 (ala GFC levels), they have to pay $100 if they want to redeem them.

(I forget specifically with this one, but, in general, entites can generally offer you less, but you don't have to take it....).

They can redeem at any time (well, IIRC, any distribution date)... but onyl at $100.

So, summary -> this is relatively expensive debt (equity is more expensive then debt, this is a mixture of debt and equity, thus it is more expensive then debt).

One day it may make financial sense to pay $100 instead of paying interest.

I'm not entirely sure when that will be... but, in the mean time, 8% yield on an equity that has been quite stable for a long period of time is a breath of fresh air in my portfolio.