Merrill Lynch has several adjustable-rate issues outstanding. The largest is Series L, which trades near $8.55 a share, or 34% of last year's original offering price of $25, for a current yield of 11.70%. The dividend resets quarterly at half a percentage point above three-month LIBOR, now about 2%. But the minimum annual dividend rate is 4% of face value of $25, or $1 a share. Other Merrill preferreds with fixed rates carry similar or lower yields. The adjustable-rate issue arguably should yield less than straight preferreds, because its dividend can only go up. ONE FAN OF THE ADJUSTABLE-RATE issue says it could double in the next year if the financial crisis abates. The issue traded in June at $15. Indeed, all Merrill preferreds could trade up once the company's scheduled merger with Bank of America goes forward. The deal has been approved by shareholders of both companies and could close by year end.

Bank of America has a large adjustable-rate preferred issue, series E, which trades around $8.82, for a current yield of 11.34%. It, too, is at its dividend-rate floor of 4%. The Bank of America adjustable-rate preferred yields more than some of the bank's fixed-rate preferreds.

Goldman Sachs has issued a series of adjustable-rate preferreds, including the series A, which trades around $10.31 for a 9.09% yield.

HSBC also has several series of adjustable-rate preferreds with current yields of around 10%.

MetLife 's (MET) series A adjustable-rate trades at $11.55, yields 8.66% and has a dividend floor of 4%.

While preferred stock isn't as secure as debt, both banks and the government seem intent on preserving preferred dividends. As part of the bailout of Citigroup (C), for instance, the company's quarterly common dividend was cut to a penny per share. But preferred-stock dividends were maintained, as the government made a new $27 billion preferred-stock investment in the troubled bank.