FTAI Aviation Preferred Series C Faces Sell Rating as Yield-to-Call Drops to 1.75%

Key Facts

1FTAI Aviation Preferred Series C shares offer an 8.2% effective yield, but the yield-to-call is a low 1.75%.

2The company is expected to redeem the shares in June 2026 to avoid a reset yield jump to 11.3%.

3The company previously redeemed Series A and B, reinforcing the likelihood of a Series C redemption at par.

FTAI Aviation’s Preferred Series C shares are facing a sell recommendation despite an attractive current effective yield of 8.2%. Analysts point out that the yield-to-call (YTC) is significantly lower at just 1.75%, suggesting limited upside for investors at current price levels. The company is widely expected to redeem these shares in June 2026 to avoid a projected reset yield spike to 11.3%. This move aligns with FTAI's previous financial strategy, having already redeemed its Series A and B preferred shares. Consequently, the high likelihood of a redemption at par value makes the current market price less attractive for long-term holders. Investors are cautioned that the high current yield masks the structural risks associated with the upcoming call date.