Assessing First Republic Bank's Performance Amid Market Volatility (NYSE:FRC)

First Republic Bank has suspended payments on each of its seven series of preferred stock, making common stock a better option for investors. The implied yield of the preferred stock varies materially from one series to the next, and the decision to suspend payments was a measure of prudent oversight. While the advantages of preferred stock still apply, the downside potential for both common and preferred is probably identical or close to it. The common shares are a vastly superior option for investors who are comfortable with the risk.