Athene Insurance Offers 4 Preferred Shares: I Like D The Most

The article recommends a 'Buy' on all Athene Insurance Preferreds, prioritizing D, B, A, and E, due to their yields and Athene's robust financial strength as a retirement services provider with $360 billion in assets and strong equity coverage. The author highlights these preferreds as valuable for income portfolios, especially retirement accounts, while advising investors to consider call risk, coupon structure, and tax treatment.

Analysis

The analysis presents a strongly bullish case for the entire suite of Athene Insurance's preferred stocks, driven by the issuer's significant financial strength and attractive yields. Athene, a subsidiary of Apollo Global Management (APO), is characterized as a robust retirement services provider managing $360 billion in assets with strong equity coverage over its debt and preferred obligations. A 'Buy' recommendation is applied to all series, with a specific preference order of D, B, A, and E. This ranking is primarily determined by risk mitigation, with series 'D' favored for its superior call protection. The investment thesis positions these securities as particularly suitable for income-focused strategies, especially within tax-advantaged retirement accounts. However, the author cautions that a comprehensive evaluation is necessary, highlighting call risk, the specific coupon structure of each series, and their tax treatment as critical due diligence factors for potential investors.

Key Decisions for Investors

• Investors seeking stable income should evaluate Athene's preferred stocks, given the issuer's robust financial profile as a subsidiary of Apollo Global Management with $360 billion in assets.
• When selecting among the series, prioritize the 'D' issue for its superior call protection, which mitigates the risk of early redemption in a changing interest rate environment.
• Before investing, conduct thorough due diligence on each series' specific call features, coupon structure, and tax treatment to ensure it aligns with your portfolio's income goals and risk parameters.