Market Mispricing: A Tale of Two Yields Khing Oei, a former Goldman Sachs credit investor, has shed light on the markets' mispricing of MicroStrategy's STRC preferred stock.
According to Oei's analysis, the market is assuming that the 14% yield on STRC will continue indefinitely, despite the fact that the shares have no maturity date and do not guarantee repayment of their face value.
This assumption is naive, as evidenced by the shares' decline during June's Bitcoin selloff, which plummeted them 25% below par.