All about converts

$175m (26.25m) pep/prfd coming tonight from MS/WFC/CS. Terms: 3.75-4.25% up 20-25%, s/c 5yr @130%, Partial pctns. UOP = repay t/loan & gcp. This one we do not get; Perp pfd w/poor t/over pctn, static b/even > call & withholding tax issues (will not be listed). 7.375% 22 str8 OAS 410 (credit color to follow). We’ll use L+625 (1.5x) ADV = meager 245k, no leaps, 2y 90d50/10 ile = 31/24. We’ll cap vol at 22 given structure & no adv. Theo = 103.5. Model schmodel, try monetizing the vol. To upside, would need to run theo light 2 get b/e b4 call & will trade badly to a material downside move. One positive = right sector which may bring the long only’s 2 the table (excuse the pun). We don’t like too much hair in our cereal, so we’d AVOID unless cheaps.